As the state of the economy continues to take its toll on working families, more and more householders are finding it impossible to put any kind of money aside for ‘rainy days’. This, of course, leaves them unable to provide for unexpected expenses like a car or important household appliances breaking down or an unexpected need to travel, for example. Should an emergency like this arise, a payday or short term loan is often the only answer. There are, however, a few facts householders should be aware of before taking out such a loan.


Short term loans like Uncle Buck’s loans are suitable for short term cash requirements only. Designed to help you cope with unexpected expenses, they are not suitable for long term borrowing under any circumstances. They are also not suitable as a means of coping with long term financial difficulties.


Typically taken out over a period of 30 days, a short term loan is a commitment to repay the amount borrowed plus interest in full by the due date. If, for example, you borrow £300 at the fixed annual interest of £292% (representative APR of 1269.7%), you will be required to repay £372 at the end of the 30 days.

Trio Plan

An alternative is to ask to spread your cost over three months instead (subject to affordability and status checks). While this may be a little more expensive as a whole, it will allow you to spread your repayment over three instalments. An instalment loan for £300 to be repaid within 91 days like Uncle Buck’s ‘Trio Plan’, as an example, would cost you a total of £458.13. Each instalment would, however, only be £152.71, which could make meeting your obligation to repay a lot easier than repaying the sum of £372 in one go.

When Repayment is not affordable

Should either of these options make timely repayment impossible or leave you in a situation where repaying your loan would leave you with a shortfall of funds for the month to come, you should not take out a loan at all. While late payment charges and subsequent interest are capped, defaulting on your payment could lead you deeper into debt. In a similar fashion, repeatedly taking out short term loans in order to cover a consistent shortfall of available funds could have a negative impact on your credit rating and will eventually result in lenders refusing to grant further loans, which in turn could equally result in increased financial difficulties.

Get in Touch

You can learn more about short term loans by exploring our Website or by calling our call centre on Tel.: 01959 543 400 (Call charges may vary depending on your phone provider. Calls may be monitored for security and/or training purposes).