There are now more short term finance options out there than ever before, the only difficulty is making sure that you choose the right one.
We have drawn up a guide to all of the pros and cons of different variations currently available to help ensure that you have all the knowledge you need to make the right decision.
1. Doorstep Lending
With so many different methods of borrowing money including the internet, on the phone and visiting your local bank, doorstep lending has been created for the maximum levels of convenience.
The balance of the agreed amount and the repayments will be delivered directly to your home by an agent of the lender.
What are the key pros and cons of doorstep lending?
For more information relating please visit the dedicated Citizens Advice Bureau page by clicking on the link below:
2. Logbook Loans
These are targeted at borrowers with a poor financial history and the balance of the loan is secured against the value of the borrower’s vehicle.
As with all financial options, they have their advantages and disadvantages and to help you make an informed decision regarding this type of finance we have drawn up a short list of pros and cons.
3. Payday Loans
Payday lending specifically targets borrowers who believe that their financial options are limited.
Designed to be repaid on the borrower’s following payday with the payment being collected automatically via a CPA (Continuous Payment Authority).
The Independent recently took an in-depth look potential consequences of borrowing money in this way in the following article:
4. Family and friends
Turning to family and friends can be the ideal way to work through a financial fix.
Because of the potential to damage long term relationships with people that are close to us, this option should be explored thoroughly before making any decision.
5. Guaranteed Loans
These can be the perfect option for anyone who wants to help a friend or family member but cannot afford to lend them the money personally.
They have been designed to utilise the presence of a third party who will be put in place to ‘guarantee’ the repayments should the borrower fail to make payments as scheduled.