Moolr.co.uk | Short term loans

Short Term Loan Uses

There are many short term loan uses, but there are also many occasions and needs that should not require the use of such loans. Responsible lenders should only lend to those that have considered the options and know that a loan suits them best.

Short Term Loan Uses – Weddings

Some lenders may advertise loans specifically as wedding loans. But these loans will undoubtedly be no different from any other loan. They are just renamed as a marketing tactic.

The other consideration is whether this is a suitable use for a loan. Weddings are expensive as we all know. Many need help to pay for their big day, and not everyone can rely on family to help.  But a loan is not a good idea for paying for a whole wedding. Better to help with just some of the costs. A loan that pays for everything means you enter married life with a huge debt over your heads. And no one wants that.

New Vehicle

Many need a vehicle to get about, and for their employment. It is not just a convenience for millions, but a necessity too. Therefore if your vehicle needs urgent repairs, or even replacing, it is acceptable to borrow to make that happen. Again though you must be realistic about what you borrow. You may have to downgrade what you want and settle for something more basic. Again you must be comfortable about making repayments, so do not borrow unless this is the case.

Short Term Loan Uses – Debt Consolidation

You may want to take out a loan despite not needing money to buy anything at all. That is because you can take on debt to consolidate debt. You can use it to pay off other debt that has attracted much higher costs than the new debt you take on. This makes sense after all, as it reduces the total cost of your debt. 

Short Term Emergencies

This is a very valid reason to use loans for. Just, as always ensure the funds will be available at a later date to pay back what you owe. Loans are often shaped though to help people through short term problems. They are not there for treats or for long-term debt.

But to cover a repair to a vehicle needed for work, or to pay a utility bill or repair that burst pipe, a loan makes sense. Just sit down first and ensure

that there is no other way to deal with the situations that face you.

Seasonal Needs

Loans repayable over short-term periods can allow individuals to keep up with seasonal trends. For example, buying presents, especially at Christmas. Do keep in mind though that this is far from an ideal way to take on debt. Consider lowering your seasonal costs or planning ahead. Our next article shall look at how to do this in greater detail.

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