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 a pay day loan UK provider, 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.
4. Apply through a Reputable Company
When you apply for a loan make sure you find a reputable brand. Find a company that will strive to offer the best service possible to all of their customers.
Find a company that focus strongly on treating customers fairly and are proud to get such a large amount of positive feedback from prospective customers, recent customers and even their older customers who may have dealt with them when struggling with their finances.
5. Keep some money aside in case of emergency
As mentioned in tip number 1 it is advisable to keep some money aside just in case of emergencies. Unfortunately the unexpected does sometimes happen whether it is time off work or perhaps a problem with your house or car. If you start planning now and put aside an extra few pounds every month you are softening the blow that you could experience if something unexpected does rear its head and temporarily increase your outgoings.