A loan may not be the best option
Whilst we are not a direct lender, and rather a fully licensed online loan broker, we are extremely supportive of both responsible lending, and responsible borrowing. Put simply, that lenders should only lend to those they are confident can repay comfortably, and borrowers should only borrow if they are too.
There will come a time in most of our lives when we need financial help on some level. We believe that a short term loan is the most affordable method of borrowing, in the right circumstances.
In order to support our customers, and ensure that you have considered all eventualities, and all options available to you, we have taken the time to give you information to help you come to a reasoned decision as to whether you should apply or not. Of course, many other lenders or loan brokers wouldn’t provide this information, to just get your business, but we take our responsibility to customers seriously.
Money Advice Service
The Money Advice Service (MAS) was set up by the UK government, in 2011. The purpose of MAS is to assist people in budgeting better, and who need advice on all things finance. We suggest taking a quick look on their website – moneyadviceservice.org.uk before applying for a short term loan, as they offer financial tools and planners that you may find useful, or even give you ideas on how to avoid borrowing altogether.
Before committing to additional lending, you should ask yourself if you can actually create the same outcome by budgeting. If your thinking behind a short term loan is to ease the financial burden of bills and monthly expenditure, ask yourself if a loan is a sustainable option. Could reducing your outgoings actually be a better solution to additional disposable income, by forgoing the more ‘luxury goods’?
The most simple way of doing this is to write a basic list of your income and expenditure each month. What is left, after taking off the expenditure from the income is what’s known as your disposable income. This way, you can see as a snapshot in front of you, what you regularly spend, and make a mark against anything that is non-essential. You may find that after a couple of minor changes, you are much more comfortable financially each month.
If you feel that you still need to apply for a short term loan, then no problem – simply add the monthly repayments in to your budgeting planner, to make sure the additional commitments are feasible and likely. Please do not apply for a short term loan if you do not think you will be able to meet your repayments.
For more information on saving and budgeting, why not read our savings tips blog found here.
At Moolr, we are able to find loans from £100 to £5000, with repayment terms between 1 month and 24 months, depending on the loan value. When budgeting for your potential short term loan, it is important to consider the associated APR, and monthly repayments. Repaying as quickly as possible is obviously appealing, but of course, this means the monthly payment increases. It may be that choosing a longer repayment period would suit you better, in order to keep the monthly repayments lower. The obvious consideration here is that the overall cost of borrowing increases, despite keeping your monthly costs down during the repayment term.
If you still have doubts about your ability to meet repayments on a short term loan, then could an underlying problem with existing debt be the problem? If your debt repayments are already rather high, or if you are considering a short term loan to repay already high amounts of borrowing, then you may want to seek debt advice. What feels like a short term solution to dealing with spiralling debt repayments may further harm you in the long run, and cause more problems.
There are several options available to you when seeking debt help. These options can allow you to repay your current debt at an affordable, realistic level, and in some cases actually write off a portion of your overall debt.
For a free debt help service, please visit Step Change, who offer free, impartial debt advice.
Another option is Debt Bubble, who have several different debt help solutions available, and will provide information on each.