We've all been there, it's nearing the end of the month and you've got just enough money left to tide you over until your next pay day. Then, you suddenly get an unexpected utility bill through the door...
You now have 3 options,
1. You could simply not pay the bill and risk having your utilities cut off by your provider.
2. You can pay the bill out of your current account and be charged by your bank for exceeding the overdraft limit. Banks will normally charge a daily fee until you are back within your agreed limit - the APR for these charges can work out to be even higher than some payday lenders.
Or,
3. You could get a short term cash loan.
Short term cash loans have many features:
- You can borrow small sums of money
It allow you to take out a loan from as little as £40 which means that you are able to borrow the exact amount that you need. With some other lenders you will not be offered a loan of anything smaller than £1000, so you could end up with a loan for more than you actually need.
- Most cash loans are quick and easy to arrange
For a lot of cash loans you simply apply online and you don't have to fill in lengthy application forms. Also, most lenders aim to have your loan to you within a couple of days.
- All charges are included up front
For most loans all of the charges are included up front. Therefore, you can clearly work out the amount of loan that you can comfortably afford as you'll know exactly what your repayments will be each month.
- The majority of cash loans are unsecured
The APR's on cash loans tend to be higher than other loan types such as homeowner loans and secured personal loans, as the lenders can be subjected to a higher amount of risk. However unsecured cash loans offer less risk for you as the your loan is not secured against any of your assets.
- Even if you have bad credit, you will often still be accepted
Most cash loans require no credit check as they are income based and therefore, you are assessed on your current situation and not your payment history.
Remember, it is always worth speaking to your utility provider before you take out a loan or exceed your overdraft to pay your bill. More often than not they will sympathise with your situation and come to an agreement with you to try and avoid your utilities being cut off. However, if you do end up needing a loan then it is a good idea to shop around for the loan that's best suited to your needs and budget.
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