What Types of Short-Term Loans are there?

With many different types of short-term loans it can be rather confusing to know what is the difference and what is available to you. There are many types of loans generally and this means that you could find the whole thing rather confusing. Unless you have borrowed a lot before or you have studied personal finance then it is unlikely that you will be familiar with all of the different loan types. With short-term loans being fairly new, it is even less likely that you may know all about them. It is a good idea to have an idea what short-term loans there are and to know a bit more about them as you will then be able to decide whether they might be suitable for you or not. Even if you do not have an immediate need for a loan, it is always good to know what is available so that you can use it if you have a need in the future.

Payday Loans

A payday loan is probably the most well-known short-term loan. This is because it tends to be the most advertised and has been around the most. This means that you may already know a bit about it. The loans came about when it was noticed that those people who had a poor credit record were just unable to borrow money from anywhere. They decided that they would help them and set up pay day loans. These therefore did not worry about a person’s credit record. They were also designed to help out in emergencies and this meant that the money could be accessed really quickly. This means that there are some lenders that are available to get borrowers money evenings and weekends and therefore this can provide for them even if their emergency is outside of normal business hours. They will also be able to get the money to the borrower the same day and possibly within a few hours. This means that they really will be able to provide emergency money to most people. There are very few limitations on who can borrow but borrowers do need to be UK residents over the age of 18 who have a bank account and a regular income.

Instalment Loans

An instalment loan is very similar to a payday loan apart from the way that it is repaid. Payday loans are repaid in full on the next payday of the borrower. This can be great for those that can afford to do this and afford all of their other expenses but for some people this can be a struggle. The instalment loan should help because it will enable you to repay across a series of months. This can help to make it much easier to manage the repayments. These will be a bit more expensive because the loan lasts for longer and so the interest will be higher. However, if it means that things are much easier for you, it could be well worth paying that extra. Also, if you do not make the repayment on a loan you will get extra charges and so taking out a loan that you are confident that you will be able to repay could be a better decision with less risk attached.

Guarantor Loans

Guarantor loans work a bit differently. They allow borrowers to have a lot more money. With a payday loan it is likely that you will only be able to borrow up to £1,000 and in many cases less than that. However, it is very possible that people will want more money than that. The guarantor loan can provide this as it offers thousands of pounds, repayable in instalment still with no need for a good credit record. However, the big difference with this one is that you have to find a guarantor, who is a person that is willing to make the repayments if you are not able to. You will therefore need to find someone, who has a good credit record, that is willing to do this for you. Some people may know plenty of possible candidates and others may not.

These are just some of the loan types available. Lenders will vary in what they offer and their specific terms will also vary. This means that it is always important to find out exactly what is being offered so that you know what you are signing up for. The above descriptions are general and there may be differences between those and what you are actually offered by a specific lender. If you are not really sure what they are offering then it is wise to contact them and ask questions. Trying to understand using the terms and conditions can be really hard and you are likely to miss things as there is so much information to plough through, so much better to contact them and ask specific questions about what is being offered, how much they charge, what the repayment terms are and things like that.

Should I use Short Term Loans to Pay for Dental Work?

If you need to have some dental work then the chances are that you will need to pay for it. Some dental work can be very expensive and not that many people have insurance and so they will need to find the money from somewhere. It can be a tricky decision to make but it is worth looking at the different options that you have to decide what to do for the best.

  • Have no treatment– having no treatment may not be an option if you are in pain. It could be that you need a filling or other work because you have decay or a broken tooth and therefore you may have no option but to get it fixed. If you need whitening, straightening or other cosmetic treatment then you may decide that it is not worth it. It is good to think it through and decide whether you think the spend is worth it. Cosmetic treatment could potentially be delayed until you have the money, but dental treatment delays would cause pain and could cause more problems in the mouth.
  • Use savings – if you have any savings then using these could be a way to get the money that you need. It can be annoying using money that you have taken time to carefully put away for something like this. You may have been saving it up for emergencies and may feel that this is not the sort of situation that you were hoping to spend it on. You may also be saving up for a specific thing such as a holiday and not feel that you want to use up your holiday money on your teeth. However, it is worth thinking about your health and how mouth can be crucial to other parts of your body; particularly heart health and so a missed, delayed or shorter holiday could be worth it.
  • Save up for treatment – it could be possible for you to save up for the treatment. If you need emergency work this will not be possible, but if it is cosmetic you may be able to save up and delay it for a while. You may need to commit yourself though, by setting up a direct debit to pay money into a savings account every month so that you are sure that the money will be there.
  • Get a pay advance– it might be possible that you could get an advance on your salary. Some larger companies are happy to provide this in some circumstances. You will be able to ask to get some of your salary early and this may be enough to help you. However, not all companies will allow you to do this and of course, if you do not have a salary then this will not be an option for you anyway.
  • Use an overdraft – it could be possible to use an overdraft for this sort of thing. It is worth being very careful with overdrafts though these days. They now tend to be very expensive. Although charges have changed and those who used to use unauthorised overdrafts are ow paying less, those that used to use authorised overdrafts are paying a lot more. Make sure that you check the costs of using an overdraft and then you can compare that with your other options.
  • Use a credit card– a credit card is normally accepted by dentists and so it could be a useful way to pay. However, it is worth understanding that they can be a really expensive way to raise money. This is not just because of the interest rates, which can be quite high, but because they are easy to not repay. There are not many rules with regards to repaying, you just have to repay a small minimum amount which tends to just cover the interest. Then you can keep the debt as long as you like. Although this can seem great, those monthly payments add up and it can mean that you will be paying that interest for a long time if you do not repay what you owe and it could end up being really expensive.
  • Get a short-term loan– these can be really fast to arrange which means that you will not have a delay in getting the treatment that you need. However, they can also be expensive and so you need to compare the costs of the different types to get one that you feel will provide good value for money. They are paid back quickly though so as long as you are confident that you will be able to afford the repayment then it can be a good idea to go for this loan if you do not like the idea of being in debt for very long. They are also available to those that do not have a good credit record which means that if you cannot get an overdraft or credit card, this will still be an option for you.