Individuals, when they find they are short on cash, frequently turn to a credit card to pay a bill or buy a needed item. There are other alternatives however, that people may overlook. A short-term cash loan is one alternative.
What Is A Short-Term Loan?
Often referred to as a payday loan, a short term loan is one that must be paid back quickly. Nevertheless, borrowers will find they don’t always have to pay the loan back with their next paycheck or two. Some lenders now offer financial products that may be paid back over a period of months, up to six months in many cases.
Why A Short-Term Loan?
Consumers often question why they should get a short-term loan, as there has been much negative press about these financial products. Individuals need to truly sit down and evaluate the alternatives, however, as a short-term loan is often the best option. Why is this the case?
Short-Term Loan Interest
Although the interest rate on a short-term loan is higher than seen with a conventional loan, the fact that the loan must be paid back quickly helps to keep the amount under control. Contrast this with a credit card.
Credit Card Interest
Credit card companies require the minimum payment each month, as this helps them collect more in interest. There is no need for the consumer to have the debt paid in full in six months. It may remain on the card for years to come, depending on the amount borrowed, and this adds to the interest. A person may actually end up paying more than they borrowed if they only pay the minimum each month. The interest rate is typically higher when the consumer takes a cash advance also.
Use of the Funds
As with a credit card, the money from a short-term loan may be used for any purpose. There is no need to share this information with the lender. Borrowers who want privacy appreciate this.
Contact MaxLend Loans to learn more about this funding option. It will be of help to many consumers when they find they don’t have the cash they need. It’s a viable alternative for many.