Many people struggle with the challenge of not having enough money to meet all of their needs. When money is tight, dealing with an emergency can be extremely difficult. It doesn’t matter if the car has broken down or you need to pay a speeding ticket, coming up with a few hundred dollars at the last minute can be next to impossible. When the money runs out before your paycheck arrives at the bank, you can turn to short term loans to help you get by. It’s important to use these loans wisely, however, to avoid falling into a dangerous cycle of borrowing.
1. Never Borrow More than You can Repay
When you take out a short-term loan, you will be informed of the terms. You will know how much money you have to repay and when they will take it out of your account. Be honest with yourself about your ability to repay the loan. If you know that you will not have the funds available when you are paid again, then you should not take the loan. Doing so will only saddle you with deep fines and serious problems. Your better choices will be to ask for a gift from family members, hold a garage sale to raise the money or try to find a second job.
2. Never Borrow More than You Need
When you’re borrowing $300, it can seem like a good idea to borrow $600 and also get that new television you’ve been eyeing. However, this is a dangerous game. You are making the loan more difficult to repay, increasing your fees and setting yourself up for serious financial headaches. Protect your finances and stay on track by borrowing only what you need and not a penny more.
3. Consider a Logbook Loan if you Require More
There are times when you need more than a few hundred dollars. If you need a few thousand to deal with a serious problem then you might qualify for a logbook loan. A secured loan using your vehicle as collateral, these loans can help you get the funds you need along with payment arrangements you can afford. Make sure that you can afford the payments before signing on the dotted line because you will lose your car if you fail to follow the agreement.
Search for Other Options
short term loans carry high interest rates and fees, so it’s always a good idea to avoid them if you can. It’s wise to look for other options before applying for one. Look around the house for goods you no longer want that you can sell. Consider having a yard sale to raise funds. If funds are consistently running low, then you should consider getting a part-time job to help pay for things. Short-term short term loans should always be taken only as a last resort.
A Smart Choice if they will Save you Money
There are times when a short term loan is a smart, money-saving option. When considering your alternatives, determine how much it will cost you if you cannot get the money together in time. If you have a legal fine that must be paid, the alternative could be jail time and expensive legal fees, so a short term loan would definitely save you money. If you are short on rent money, then you could wind up facing an eviction, hundreds of dollars in legal fees, the expense of moving and the challenge of coming up with deposits for a new place. In this case, a short term loan can absolutely be the right way.
short term loans should never be abused. Try to find other ways to cover the expenses and stay on track financially. If you do need a short term loan, make sure that you borrow only what you need and will have the money to pay it back on time. short term loans can be blessings when you are facing expenses that must be covered, but they should always be used wisely.
Tami Thatcher is a finance blogger living in Seattle. She writes for www.logbookloans.net official site where you can find out answers to questions about Logbook loans.