Short Term Loans and Affordability

When considering your borrowing options a popular lending market for consumers is the short term loans market. Short term loans have been available to consumers for many years now and as the years have passed the resource which is offered has adapted and changed to ensure the product remains useful. The key with this unique type of borrowing is to ensure that the loan selected is one which is truly affordable and this means it works alongside the other normal costs you face. This approach of making sure short term loans are affordable is very much the focus of lenders who exist in the modern day market place but this has not always been the case. As mentioned, the market and the products available have changed over the years and this is as a result of not always being able to correctly meet the true needs of the customers who turn to short term loans.

Short Term Loans

In the past when we generally referred to short term loans this was in the content of payday loans. Payday loans are a product and term which millions of consumers are familiar with. In some respects the payday loan was the first type of loan to be offered in the manner of an online lending resource and as such had a few lessons to learn in the early years of trading. The concept of the payday loan was simple in that lenders gave consumers the ability to borrow a small amount of money, quickly, to be repaid on their next employment pay date. The aim was to ensure the product was simple and easy to understand due mainly to the fact that this specific type of borrowing was new and therefore consumers needed to be able to trust they were getting a product exactly as it was presented. Payday loans often meant borrowing in the region of £300.00 and paying £30.00 interest for every £100.00 borrowed, so a £300.00 loan would cost £390.00 on the agreed date.

Although simple the payday loan has not proved to be the most desirable way of borrowing from short term loans lenders as the years have passed and this is mainly due to the fact that they were not always affordable to the customers using them. The lump sum repayment structure lead to customers being put in a position where they could not effectively make repayment to satisfy the loan agreement and making costly interest repayments instead. As the years have passed this fact became increasingly clear and as such lenders had to make a change in order to ensure their product was still used by consumers and offered a product which was genuinely useful. Short term loans nowadays are delivered in a package which allows repayments to be made over a number of months and therefore at a reduced rate. These loans are therefore known as instalment loans. Instalment loans are increasingly becoming the only choice considered by consumers thanks to their ability to be flexible and therefore in fit alongside their existing expenses.

Payday Loans Found in The UK

If anyone is ever looking to borrow money at any stage in their lives they will always have to consider a number of different things before any application can then even look at being completed. First of all someone must know that they definitely need to borrow the money in the first place and then if so they can then look to only borrow a realistic and sensible financial amount. Any amount borrowed must be affordable for that person so they can then make sure they are in a position to repay the debt. The actual type of finance can then be selected and here there can often be multiple choices. For example from the financial market place if a loan is needed it can be a short term loan such as payday loans UK or possible instalment loans can be required. Credit cards are another common way to borrow money. As well as people considering the finance they need they must also choose the lender to submit any application through. Again there can be multiple choices here to. Once all of these have been decided on an application can be submitted.

Payday Loans Found in The UK

In this article I am going to look further into the payday loans UK borrowing market so basically looking at Payday loans. A high number of different people are looking for Payday Loans UK when they need to borrow money. These are short term loans that are often used by people who have poor credit and therefore may have been rejected elsewhere. The direct lenders who aim to provide people with payday loans aim to help people with bad and poor credit loans when they are needed. Lending to such people can always be a risk as they not be able to repay the debt and because of this it is typical that payday loans charge high interest and can often be expensive as a way to borrow money. The interest may vary on payday loans UK however most lenders will charge a high amount. There are certainly cheaper borrowing options than payday loans.

As mentioned briefly above Payday Loans are often an expensive way to borrow money from the financial market place. Now the interest can vary and some direct lenders may be able to offer any loan at a reduced rate from one of their competitors. It can be common however, that most lenders will charge around £25 to £30.00 per £100.00 which as you can see is expensive interest. It is dear because people only borrow the loans in the UK for a single monthly period yet they pay high interest despite only having the loan for such a short space of time. Lenders know that lending their payday loan to people who need them is always risky as mostly people with bad credit take them out. That will be one of the main reasons why lenders who offer loans to these such people charge high interest as they calculate that a number of different borrowers will not repay the debt. 

Lending Stream Provide People with Six Month Loans

If anyone is ever looking at taking out finance of any kind at absolutely any time they will always have to consider a number of different things before they can then even think about applying for it. They must always consider every one of these aspects before any application can then be submitted by that person. They must for instance first of all know that they one hundred percent definitely need to borrow the money in the first place and then if so they can then select only a reasonable amount to borrow. Any amount chosen must then be affordable for that person so they can then successfully repay the debt. The actual type of finance can then be considered, there can be a number of different options when choosing this. People for example if a loan is needed can borrow both short term and instalment loans here. As well as anyone considering the type of finance they need they must also select the lender to apply through. It is actually the lenders that I will be focusing on during this article. A particular mention is to Lending Stream and what they provide to borrowers.

Lending Stream are a large UK based financial lender that offer short term loans as a way of borrowing to many different customers. They aim to help people obtain short term loans when this way of borrowing money is desired. In term of the direct lenders who offer this kind of finance Lending Stream are one of the biggest and best in what they can offer. People through them can apply and be approved for amounts ranging from £100.00 to £450.00 for first time applicants and then repeat Lending Stream customers can then look to obtain loans up to £1000.00 providing of course their application is accepted. People then have the ability to repay the debt back to the lender over a six month period. They then have the option to repay back the debt earlier if they choose to and this way clear the balances earlier. This gives borrowers flexibility on the loan repayments which I have always found to be important.

As well as the flexibility loan company Lending Stream offer on their loans they also have another major benefit. They can often give people the cash loans after they have approved the application very quickly and again I feel this is always important. When people are applying for a loan the chances are they will want the cash quickly so they can have it at their disposal when needed and Lending Stream can certainly enable that to happen. People can apply through them online in a quick and simple process that should only take minutes to complete. If the same application is then approved they can look to pay that person in their chosen bank account within just minutes. That is a very quick way to get a small cash loan when one is required.

Direct Lenders can Often Allow Borrowers to Take out Instalment Loans

When it ever comes too absolutely anyone borrowing money a high number of different people may not actually know that there could be a number of different borrowing options available. That is just one reason why no one should ever rush into applying for the first piece of finance that comes along their way. People must take their time to explore the different borrowing options, choose one and then potentially apply for it and then if they are accepted on the application they can take it out. From the financial market place these days’ people can often look to get accepted on applications for both short term loans and instalment loans. Now normally if people want instalment loans they often borrow higher amounts of money and then they can have the ability to repay that debt back over a longer period of time. Some direct lenders can also offer people the chance to take out credit cards that can allow people the chance to pay for different items as well as withdraw cash on credit up to a set limit by actually using the card itself.

In this article I am going to focus on instalment loans borrowing and explain what this can offer to people who decide to take these loans out. There can be people who may need to borrow a high amount of cash as they are looking to make a one off expensive payment for something such as a new car perhaps or maybe someone is even looking to put down some money on a new house. Both of those situations can often require people to borrow a large amount of money as they have to pay for something that is often expensive. Others can just need some help perhaps making their wages last until payday or they may just need to borrow money to pay for an unexpected bill etc. This can be other reasons as to why people will need to borrow. With these loans people can often look to obtain short term loans for relatively small borrowing amounts.

Some short term loans can often be used as a way to borrow money for amounts ranging usually for amounts between £100.00 and £500.00 for repayments then due back over short term periods of time. A short term loan will be due to be repaid back in full to any lender within twelve months. Any loan repaid back longer to direct lenders will not be classed as a short term loan. When people tend to think about short term loans they immediately start to think about pay day loans or some other kind of other expensive finance but this is certainly not the case. People can nowadays borrow these smaller cash loans and then repay the debt as an instalment loan rather than just looking to clear the debt in full with high interest as soon as they are paid again by their employer.

Payday Loans Can Often be Expensive

When it ever comes to borrow money, a high number of different people may not actually know that there are a number of different ways to do this. That is just one of the so many different reasons why people should never ever rush into applying for just the first piece of available finance that may come along their way. People for example can often take out both short term loans and instalment loans in the obvious loan borrowing format. People here can often borrow a range of different loan amounts for repayments then due back over a number of different repayment terms. Another common way to borrow money would be via the use of credit cards, these of course allow people the chance to pay for different items as well as withdraw cash on credit up to set limit via the actual card itself. All three of these finance types are very common ways to borrow money. In the article below I am now going to focus my attention to short term loan borrowing and I will explain more about in particular payday loans and how these can work out to be expensive.

Pay day loans are a very common way for people borrow money, they are one of the most common types of short term loans in the financial market place. This marketing place has grown in recent years as it has seemed that more and more people turn to this way of borrowing money when they need cash quickly for a limited period of time. These loans themselves can often turn out to be very expensive and pay day loans are certainly no exception. People often borrow these for a maximum period of a single month and then repay the debt in full just as soon as they are paid from their work. It can be common that most lenders that offer such a product will charge around 25% or over per £100.00 borrowed by any customer. If someone was to therefore borrow £300.00, people would have to repay around £375.00 to clear that loan in full. That will be expensive interest considering how little time people repay the debt over.

A strong benefit of payday loans however, will be the speed in which people can receive their money once their financial application has been accepted by the lender. I always feel that when people need money the chances are they will want this quickly. People often want the money at their disposal quickly so they can use it as required for whatever they need the cash for. People can often apply for pay day loans online or over the phone in a process that should only take a matter of minutes to complete. If that application is then accepted the lender can look to fund that person the very same of their application getting completed. There can also be some cases when lenders can fund the borrower within just minutes of them approving their loan.

Applications for Short Term Loans

There can always be a time when someone is looking to borrow money. When this is the time for someone they will always have a few different things to consider before they even then think about applying for finance. They will always need to firstly know that they definitely need the money in question and then if so they should always then pick a sensible amount to borrow and one that is also affordable so the debt can be paid back. People will then to of course pick the type of finance that they want. There are a number of different borrowing options and then as well as deciding on the finance to take out the lender can then be chosen that people can actually then apply through.

When it comes to borrow money a high number of different people may not actually know just how many borrowing options could be available for people. That is why no one should rush into applying to a lender and no one should then ever just take the first piece of finance that comes along their way. These days from the financial market place people can obtain both short term loans and instalment loans when a loan is needed. This gives people the chance to borrow a selection of different loan amounts for repayments then due back over a number of different terms.

Credit cards are also a common way of borrowing and these are different to basic loans that people take out. A credit cards allows people to pay for different items as well as withdraw cash on credit up to a set limit. People do this via the actual use of the card itself and the limit they can spend up to is determined and agreed before the card is issued to the borrower in the first place. People are then billed for the use of the card as to how much they have spent. People can then pay either the minimum payment which is usually around 2% of the balance, they can repay the debt in full or they can also pay any amount between.

Now no matter what people are applying for whether it is in fact credit cards or a short term loan or other loan is required the application process should be more or less the same. Direct lenders who want to loan people money or give them access to a credit card will look to fund that person as soon as possible. They want to remain competitive in the financial market place. People can often especially with short term loans borrowing apply within minutes over the phone or via an online method. The lenders who offer that can aim to pay out that person sometimes within just a few minutes. If people want an instalment loan or a credit card with maybe a higher balance it can sometimes take a longer amount of time they get the finance approved but then people can repay those debts over a longer time frame.