When you are running low on funds, it can be a stressful and daunting time. You have many decisions to make about how you will manoeuvre your way out of this tight spot and sometimes the most sensible choice you can make is to take out a short term loan.While short term loans
can have positives and negatives, they can often be an excellent option for those who need money quickly and without hassle. Read ahead – we will outline some of the ways a short term loan can make life a little more manageable when you are strapped for cash.
- Use the short term loan for things that really matter – A short term loan should never be used for frivolous or optional things, such as a new outfit, a holiday or a big night out. Instead, a short term loan is suitable only to help you cover unexpected costs (such as emergency home repairs), health issues (such as unscheduled time off of work without pay due to illness) and other personal crises.
- Don’t get into the cycle of never ending short term loans – If you elect to take out a short term loan, you need to act responsibly when it comes to paying the money back on time and planning for the future. Ideally, you can make plans for the next month/ year’s money matters so that you can avoid taking out another loan immediately. Getting into a cycle can end up costing you a lot of money – that is not what short term loans are intended to help you achieve.
- Create a budget and stick to it – If you find yourself in need of a short term loan because of your financial irresponsibility, you may want to consider creating a budget. A variety of great apps and sites are available that can help you create your budget – and then stick to the plan.
- Consider financial counselling or courses – If you find yourself in the red every single month, you may need more than a budgeting app or a stricter sense of restraint. If you are really struggling, you should consider enrolling in financial counselling or money management courses. These can really make a big change in your life, and help you to assess your financial situation both present and future.
- Ensure that you pay it back in time – Short term loans are only a positive financial step if you intend to pay them back on time – and you then make good on that intention. If you neglect to pay your loan back in a timely fashion, you can really suffer negative consequences and get yourself into even deeper debt and an endless cycle of payday loans.
Published Date: Thursday 6th October 2016