6 Months Loan Can Suit Your Needs

Warning: Late repayment can cause you serious money problems

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Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%

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Author: Internal Marketing Department

 

When it comes to resolving a short term Financial Problem, having as many options at your disposal is going to be of considerable benefit. Having a variety of options to choose from is always a good thing and if you need money at short notice, having a range of options will give you the chance to find the best solution.

It is fair to say that short term loans are of benefit but they are not always ideal. Some of these loans operate on the basis that the loan has to be paid back within 14 days or 30 days, the traditional period before someone gets paid again. In many cases, this will provide an applicant with the funds they need and the means to pay the loan plus interest back in one go.

 

The only problem is, this is not possible for everyone. Depending on the amount of money that is needed, the amount of money that needs to be paid back and your own level of income, paying off a short term loan in one go is not possible. This is where the use of instalment loans, such as a 6 months loan, may be a better option for you.

 

A 6 months loan provides flexibility

Being able to split your loan repayments into 6 equal payments will increase the amount of money that is paid back, but it will make repayment more affordable. This is down to the fact that the amount of money that is paid back each month will be smaller. This will give people a better chance to be able to pay this money back in a way that is sustainable for them.

This style of loan is not ideal for everyone but it should be noted that a payday loan that is paid back within a month is not ideal for everyone either. There will be some people that benefit from being able to pay back the loan in equal amounts over a longer period of time, and this is something for you to weigh up.

A responsible short term loan will provide applicants with everything that they need to be able to make the best decision for them. This will include providing the APR amount and often a calculator so the applicant is fully aware of what they will be asked to pay back and when before they apply. Taking out a 6 months loan is a more viable option for some people, but it is always best to review this and ensure that it is indeed the best option for a person’s finances.

Responsible lenders check their applicants

 

A responsible lending firm will also take steps to ensure that the applicant is in the best position to pay back the loan. There are some lending firms that are happy to provide loans with the minimum of Verification or review but these are the firms that will inevitably have clients that end up in further financial difficulty and may even be in breach of the laws on affordability and creditworthiness assessment. A responsible lending firm will only provide loans to a client after they have reviewed their ability to pay back. This often means obtaining verification of the income that a person has.

This means that some lending firms are slower than others but even with an additional check, it is still possible to finalise a loan and have it placed into an account quickly. This should provide a greater degree of comfort to applicants.

Another strong reason for obtaining an instalment loan, over a 3, 6 or even 9 month period is the fact that there is often no charges for paying the loan back early. If an applicant’s circumstances change and they are in a position to pay the loan back early, most firms will be happy to facilitate this. This can reduce the amount of money that a person has to pay back while providing them with the flexibility and confidence that is needed when taking out a loan.

Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%

By Gemma Lane