There
are times when things get tough and you need help financially. You may find
that your parents or friends can’t help you or just don’t want to. This is when
you have to turn to other means of getting a short term personal loan. Also,
depending on what you need it for, you may need to get a personal loan that
will take you more than one year to repay. That is fine and you really need to
get the hurdle you are facing as soon as possible. The question is, do you go
to a bank to get the loan or a short term lender?
Bank Loans
Banks loans are a bit complicated to get. You must have excellent credit
and collateral in order to start the process. This means if you are a
homeowner, you will have to use your home. You can borrow from the equity in
your home and get the cash you need put in your bank account. You do not have
to walk around with a paper check on you if the bank is the same spot where you
have your checking account opened. It will either be there in a few hours or
overnight once you are approved. This is a process that could some time because
they have to check everything out before you get the money. Once you get it,
you can spend it the way you want. You can get many deposits
middletown oh.
Short Term Lenders
You should only use short term loans as a last resort. The reason why lies with
the interest rates. They are very high and these lenders can trap you into a debt
cycle that you will have a hard time breaking free from. Yes, these loans will
take care of the emergency or bill that you need to cover, but at what cost?
You are going to stress yourself out trying to pay this loan off. Once you do
pay it off, it will take up most of your paycheck, and you will have to borrow
that money again. Plus, you will find yourself taking out another one of these
loans just to cover that one and still be in the same whole. It is best to just
leave these loans alone altogether but they are very tempting. The reason has
to do with the fact that if the bank does not approve you for a loan, these
short term lenders will. If you can’t pay the full loan off, then you stuck
just paying the interest rate every time it’s due and that in itself is a huge
waste of money. If you are going to borrow from a short term lender, do what
you can to keep the amount under $300. That way you can pay it back in
full.
You really should be careful with bank and short term loans. Try other options
first. You need to save money whenever possible to stay out of debt.