Tuesday, 18 July 2017

: How A Short-term Loan Could Help You Pay For An Unexpected Wedding Abroad


In an ideal world, you will have saved up a lot of money in either a savings account or an emergency funds account that you have custom made with an in depth meeting with your bank. However the economy is always fluctuating, and somewhere down the line, something unexpected is going to happen in your life. Financially, the majority people don’t ever really feel like they have enough savings. Even more, people don’t feel as if they have a safe cushion to fall back on when they need a quick cash injection. The broad answer would be to use credit cards, as they are an immediate source of funds, however, they carry with them a disagreeable long-term penalty if the strict payment program is not adhered to. This is especially relevant when an unexpected event like a holiday comes up, and you don’t have the needed funds. This type of situation calls for a short-term personal loan or perhaps better termed a ‘holiday loan’. This might be the better option for you as there are many different uses for such a money product and different ways in which you could get the full potential out of it during your trip.

Credit - Steven R. Doty

Why a short-term loan?

With so many products and services, banks offer that can give you the freedom you need to save how much you want to and be given a reliably fixed interest rate. However, this is only available for long-term savings accounts, which require certain rules to be adhered to by the holder. With a little financial savviness, you’ll start to notice what the best route for your lifestyle will be. Of course, the next step would be to take out a credit card which has a set balance, and when used, immediately starts the clock for when repayments must be made, with interest.

None of these options are effective immediately, but with flexible long-term plans, with a reasonable schedule for when you can pay the money back to the bank or loan company. A short-term loan is more of a product, than it is a service such as the short-term plans, so a company treats you like a client rather than someone as part of a herd. Therefore, you short-term loan can be increased, the interest rate is flexible, and the repayment schedule can be prolonged if that’s what you wish. This kind of loan gives you a short-term cash boost but has the properties of a medium sized loan with flexible repayments.

Ease of attainment

Short-term loans are designed around loosely-based financial certainty of the applicant. This means that the overwhelming majority of people applying need only supply a brief amount of detail to the loan company. The immediate approval rate is very high making it easy to apply and attain. As they are only a short-term prospect, the APR rate is going to be high, but the instalments and repayments schedules are going to be flexible.

Shape the amount  

If you’ve been called out to attend an important wedding abroad, but you far from have the funds needed to go on the trip, along with book the hotel and pay for local services such as public transport, a short-term loan is a great saviour. There are many bad credit loans, which you can define the amount you need beforehand. If you plan out your journey, and then estimate the overall expenditure of the entire trip, you can shape the amount you need, as well as select the length of time you wish to hold the loan and therefore, the interest rate will acclimatise to that schedule. Unlike credit cards that become more uncertain if you don’t pay back the required balance each month, short-term loans allow you to plan, so you don’t run into this kind of trouble, giving you more control.

Image by - Jorge Royan



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