The tips presented below are designed to help you make the right decisions when taking out finance through small short term loans companies and will hopefully enable you to avoid any problems down the line after taking out your short term loan.
1. Make sure you can afford the repayments
First it is very important that you find a suitable loan term and amount with an affordable sum to pay back every month. You may want to write up your current income and outgoings and make sure you have enough left over to stay up to date with your payments (ideally with a bit more to spare for emergencies, more about this later).
2. Only apply for what you need
When you take out a loan make sure you know why you are taking it out (we refer to this as your loan purpose) and only borrow what you need. This may seem like an obvious point but it is very easy to be tempted into getting a bit of extra money to play with on top of what you need.
If you are buying a car, take out the exact amount you need to buy the car. If you are consolidating some other debt then only take out what you need to pay off your debtors. The same can be said for any loan purpose. An extra £500 may seem tempting at the time but remember it will increase your monthly payment and total amount repayable.
3. Avoid Broker Fees
If you apply directly through pay day loan UK provider Uncle Buck you will not be charged any additional fees for your loan. If you apply through a broker then a broker fee will be added to your loan amount. Without a broker fee you will be paying back less overall for your loan saving you money. (more…)