Top 10 reasons people get a short term loan

Short term loans have become a common thing in the modern age with people taking them out on a regular basis. Millions of people in the UK have short term loans out and this number has been holding steady for a number of years.

Here are some of the reasons why people take out short term loans:

To pay off other loans
Some people take out short term loans to pay off a selection of other smaller loans. If you have a credit card with some money owing, a few store cards and some money you owe a friend it can be easier to take a short term loan out to clear all of these and only pay back one loan.

To avoid overdraft charges
Some overdraft charges on UK current accounts are high, and some charge you a set amount per day you are overdrawn. Taking out a short term loan can avoid these charges and leave you with just one loan to pay back.

They have no savings
What happens if you’ve already had to use your savings for another reason but all your friends want to go on holiday next month? Short term loans are perfect for things like this as you can have your holiday and make monthly payments back for what you’ve borrowed.

You or your partner has lost their job
If you or your partner loses your job you might find it tricky for a month or two adjusting to a new budget and being stricter with how much you spend. Taking out a short term loan means you can pay off all your bills and just pay back one monthly figure.

Unexpected illness
Some companies do not pay sick pay and you’ll only get statutory sick pay which for a lot of people isn’t enough to pay the bills or buy food. By taking out a short term loan you’ll be able to get back on your feet and start paying it back when you return to work.

Your car breaks down and you need it to get to work
A lot of people rely on their cars for their everyday lives, and a lot rely on them to get to and from work. If your car breaks down and you don’t have the funds straight away to repair it a short term loan can come in handy. You can then get your car fixed as quickly as possible and pay back what you can over a number of months.

Your bills come through much higher than expected
Over the winter it’s likely your electricity bills are going to be much higher than in the summer when you need the heating on to keep warm. A lot of people save and make exceptions for these additional costs, but sometimes bills can come in higher than you’d anticipate and to avoid having your water/ electricity etc cut off a short term loan can help out.

You can’t get a bank loan
If you’re unable to get a bank loan then it doesn’t mean you won’t be able to get a short term loan. We like to help as many people as we can get the money that they need.

You need money instantly
In a lot of cases you can get a short term loan applied for and approved in a few hours. So if you need money urgently because your bank is shut over bank holiday weekend or you’re away from home for a few weeks a short term loan can help you in your time of need.

You don’t have the time to go to a bank
Sometimes the simple answer is people need money but don’t have time during ‘traditional’ bank operating hours to go in and discuss their loan application. Applying for a short term loan can be done in your own time from the comfort of your own home. Check out our