Usually when you talk about taking loans, it has quite a negative ring to it. Like, when you read about people in the newspaper who have gotten in to terrible debts by loaning too much money, you usually think of them as pretty stupid – Why would you ever take a loan when you know it’s going to put you into trouble later on? On the other hand, almost everyone takes loan at some point in their lives, so is it really that bad? Whenever you buy a house, for example, you are pretty much forced to take a loan in order to be able to afford it. Many people also have to take loans when buying a new car or anything else that is expensive.
I know there’s a difference between a house loan or a study loan compared to a quick loan. Traditional loans offers you a long time to pay off your debt month by month, paying a little bit each time, often over a period of several years. When you are taking a quick loan, you have a limited time, which is usually pretty short, in which you have to pay off the full amount of the loan as well as a pretty high interest. But it’s important to keep in mind that a quick loan is always sufficiently smaller than a normal bank loan. A bank loan can often be over £100.000 where as a quick loan rarely exceeds £2000. So in that regard, the quick loan is much easier to pay off in a short time, which makes more sense regarding the time limit you have to pay it off.
It is true that quick loans often have a very high interest rate compared to other types of loans, which is why I recommend you to never use it unless you really have a good reason to do so. When you do, try using a service like Euroconsumer to find the loans with the lowest interest. If we take the example that I started this article off with, where people end up in debt as a result of excessive loan taking, I would like to highlight something: Never take loans as a way to get some extra spending cash! I cannot stress this enough. It’s important to be realistic about loans, do not neglect the very fact that you will have to pay back every penny of the loan you are taking plus interest. So in that sense, you are always losing money when you take a loan. It’s important to take responsibility for your own actions, and if you take a lone knowing that you won’t be able to pay it back, it’s your own fault if you end up in debt – don’t expect anyone to feel sorry for you!
The few times I’ve been taking quick loans, I’ve done it so that I know for a fact that I will get money from another source, such as a paycheck, so that I know that I will be able to pay it back before the loan period ends!