Short term Loans for Consumers

May 4, 2019

 

It can occur again and again in life that the financial framework available on a monthly basis does not cover current needs. The reasons for this can be manifold. Be it the circumstance that an unexpected additional payment flutters into the house, a damage to the car must be repaired or simply a compulsory purchase is at disposition. Those who do not have financial reserves here are faced with the question of how this financial bottleneck can be bridged for a short period of time until the next salary arrears. It is precisely for such a situation that there is the short-term loan, because it is not always necessary for a short-term financial bottleneck or the need for additional liquidity to take out a loan, which must be repaid over a long period in installments to its own bank. See http://screwvacuumpump.com for an observation

Small sum for a short period – the short-term loan

 

 Small sum for a short period - the short-term loan

 

Compared to a conventional installment loan or even the expensive credit line, the short-term loan is characterized in particular by the fact that, as the name implies, it is only granted for a limited period with a smaller loan amount. In other words, in most cases, the loan granted must be repaid to the lender within 30 days, together with interest. In addition, the maximum loan amounts are limited. What seems hard at first glance, however, makes sense in practice. Due to the fixed rules regarding the term and the full repayment of the short-term loan in one sum, the borrower is not tempted to use the loan over a longer period of time than necessary. A pattern of behavior that can often be seen in the use of the so-called emergency loans. Repatriation of the loan often takes years due to non-existent repayment agreements. A short-term loan thus serves only to bridge a financial shortage until the next salary payment. Short-term loans should therefore by no means be used as pure consumer loans.