Short term loans – an alternative to credit cards?

by Justin Weinger on March 22, 2013

Like a lot of things in life, money is great when you have it but a complete hassle when you don’t.  No matter how careful we are with our spending, how come it is so difficult to find  enough cash and yet once in your hand, it slips through your fingers like sand? It’s an age-old problem and one that we are all used to.  If we have people that we can call on when the going gets tough, then we can usually manage.  But what happens when we have no source of back-up; no alternative sources of short term funds in a hurry?

You may be able to use bank overdrafts, credit cards etc. but beware.  These apparent ‘monetary friends’ can in fact be enemies in disguise.  It is just a little too easy to spend on your overdraft and yet it feels like you are spending your own money.  The same with credit cards – you may think twice if handing over a large wad of notes to buy something expensive, yet hand over a credit card without a blink.  At times like this debt can quickly start to build and it only takes a hiccup like illness or loss of job to send us on the downward spiral of debt.  End result?  Not being able to make repayments creeps upon us and before we know it, we are stuck between a rock and a hard place with no sign of escape.

But what are the alternatives to these sorts of borrowings? Some may say never borrow. Use cash only and don’t buy what you cannot afford.  But it is not always that clear cut or that black and white.  In recent times companies have sprung up that can help in in a different way.  Take a look at websites like  https://www.wonga.com and you will see that there are other options open to you.

Despite the bad press that payday loans/short terms loans get, they can be a life-saver is used in the right way.  The thing about these sorts of short term loans is that you borrow as much as you need (up to £400) but at the time you take out the loan, you set a pay-back date.  Now this is the magical part of this service.  This does not happen with any other borrowings  such as overdrafts and credit cards.  With these you can happily spend as much as you want, in blissful ignorance, until the day you run out of cash and find yourself with a huge debt.  If used correctly, these types of short term loans do not carry this disadvantage.

You borrow what you need and pay it back.  Quickly and on time.  Then the debt has gone.  No more totting up more and more on a regular basis.  No more losing track of how much you have spent or how much interest you owe.  When you take out a short term loan from companies like WONGA you have the chance to be in total control of your money.

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