The Real Facts About Short Term Loans

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Presents
A,B,C of Short term loans
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About Short term loans

• For emergency expenses. E.g. Car break down,
  utility bills
• Repaid within 15-20 days or on the first paycheck
  day
• No documentation/collateral, quick approvals

3
Why short term loans.?
Perfect for last minute urgent expenses.
Funds get transferred directly into bank accounts
without any waiting period.
Instant cash through short term loans
Funds in one hour or less.
Simple convenient loan application through online
portals
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NOT Short term loans!! Why?

• Interest rates are higher than regular loans
• Delayed payments pile up debt leading to
  bankruptcy.
• If used irresponsibly, can lead to endless
  debt-cycle
• Debt situation may aggravate if lenders charge
  additional default charges apart from the
  interest rates.

5
Who can get short term loans?
Eligibility for Short term loans is lenient
compared to bank loans

• Applicant should be at least 18 years old
• Should be a UK resident
• Should have a valid bank account
• Should earn a minimum of 250 per month
• Interestingly, applicants with bad credit scores
  can also apply and receive loans

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Applying for short term loans? Watch out

• Compare the interest rates of different payday
  lenders
• Choose the one with the lowest interest rate.
• Do NOT go for short term loans to buy luxury
  goods or do impulsive shopping.
• Make payments on time to avoid delayed payment
  fee. E.g. A loan of 100 can attract interest as
  big as 25 to 50 per month depending on the
  APR.
• Choose the lender who has flexible payment plans

7
Payday loan debt

• The debt rate of individuals in UK has hit an
  alarming rate
• According to Creditaction- a UK credit watch dog,
  Individuals owe more than what the whole
  country produces in a year.
• The main reason behind the growing debt rate is
  due to customers inability to payback loans on
  time especially due to the huge interest rates.

8
SChocking facts about debt in UK

• 57,737 average household debt
• Every day 180 million is paid as personal
  interest
• Every 14 minutes a property is repossessed
• Every 3.78 minutes someone is declared insolvent
  or bankrupt
• 357,500,000 daily increase in Government
  national debt (PSDN)

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Who can help if you are in debt?
There are several debt relief experts who provide
free and confidential service to people who seek
debt relief. Some of the popular ones are
listed below

• Citizens Advice Bureau
• Consumer Credit Counselling Service
• Debt Relief Order DRO