When it comes to major investments like your house or car, a long term loan is probably necessary to make your dreams a reality. However, think about those occasions when you just need a little bit of cash to wave you over prior to the end of the month? This is when short term loans come in handy. A shorter loan can provide the much needed cash to stretch your paycheck just a little further at the end of the month. It can be used for a variety of purposes, three which we will discuss right here.
Paying Bills
When bills are due, the companies that issue them expect you’ll be paid. However, if you come up short a couple of weeks, there may not be enough funds in the account to cover the water or short term loans utility bill. In these instances, many individuals opt for paying the bill late and taking the late fee. Unfortunately, those late fees can be pretty steep, depending on the company and just how late your payment is.
In these instances, short term loans can give you the money you need to pay the bill on time, and the finance charges for the loan may be less than the late fees the company enforces. Every little bit of savings makes a huge difference when you are living paycheck to paycheck.
Covering Checks
Everybody has tried to “float” checks from time to time, writing a check with the information that funds will be placed into the account before the check clears. However, with electronic check clearing today, that practice has become a costly one for many bank customers.
If your check bounces, you incur large NSF fees because of your bank, and you’ll be susceptible to additional penalties by the party to whom you wrote the check. If you know you need household goods or other necessities before your paycheck is placed, consider short term loans as a way to get the items you need when you need them.
Unexpected Expenses
They happen to everyone. The vehicle breaks down or your son needs stitches. The bill arrives and you don’t have the money reserve to pay it. Since you can’t wait unless you have enough cash to fix your car or take your son to the doctor, you will need a source of cash that will cover these unexpected costs when they arise. Short term loans are the perfect solution because this helps you the money you need fast, and then you can repay it in affordable timely repayments.
Short term loans come in handy for many reasons, whether you need to cover bills before payday or pay a medical expense that you intend to we hadn’t bargained. There are many companies offering these types of loans today, but not all are created equal in terms of products available and the cost of those products. For quick cash at a good rate, check out what Think Cash can offer you. This business focuses on short term emergency loans for a variety of reasons and will be able to assist a solution to your financial needs.