Short term loans or payday loans are a way of borrowing a small amount of cash which you take a shorter time to pay back that a bank loan.
For example, with short term loans or payday loans, an amount of £300 could be borrowed and paid back over the course of a month. As with all loans, short term loans and payday loans do attract interest and the amount you borrow will not be the amount you end up paying back. However, many people prefer the flexibility that this type of financial product offers them as opposed to a long term loan that you are tied into paying back to a bank or building society over the space of years, which in turn will attract far more interest than a short term payback structure.
It can seem quite confusing when the market place is flooded with companies all offering quick, short term loans that you can choose how long you want to pay it back.
But sites such as Cash Carrot are there to help you to navigate safely through the mass of companies all offering different kinds of short term loans and payday loans.
Cash Carrot is a brokers service which means they are not a lender and as such they are able to offer impartial advice on which financial products you need for your particular circumstances.
Say you wanted to borrow a small amount to cover an unforeseen expense that your paycheck just was not large enough for, then Cash Carrot would take this information and match up a company that is offering a product suitable to you.
The information that you provide to them on their website, also gives both them and you a fairer idea of how much you can afford to pay back on your loan each month or week, depending on the length you have chosen for your loan, and means that they can tailor each individual quote and financial package to your circumstances and financial situation, allowing you to have complete control of your money and to help you to keep up with your repayments.
What can I use short term borrowing for?
Anything you can think of. Usually, theses types of loans are used for people who need the cash quickly and cannot wait for their next payday. For example, emergency payments that need to be made as the result of an unforeseen event, such as emergency car repairs if you car should break down and you rely on it for work, a short term cash loan would allow you to cover the cost of repairs.
Short term borrowing is a much quicker, easier and cheaper alternative in the long run to a larger bank or building society loan which you could be saddled with for years to come when all you really needed was someone to point you in the right direction of a short term borrowing product that you could use as a stop gap and pay off fairly quickly and easily.