When times get tough and you need a bit of extra money, it can be hard to know where to turn. We’ve all been there, we all know how tough these situations can be. It’s a couple of weeks before payday, you’ve not got much food left in the fridge and your boiler has broken. If you don’t have any friends or family who can lend you the money, then you might have to look into getting a short term loan.
If you’ve never been in that situation before then you won’t know where to turn. Cash Lady’s high cost credit index is a new tool that shows how millions of people each year will apply for short term credit solutions. It also breaks down data into monthly consumer trends by city. This can be really useful to look at when you are needing a short term loan yourself. I have had to look into these options before when I lost my job and needed to pay for my holiday to Florida back in 2016. Fortunately, I was lucky enough to be able to borrow the money from a family member so I didn’t need to get a loan but it is something that I considered and looked into.
Sometimes we have unexpected things that we need to pay for and we end up struggling before payday. I recently dropped my iPhone and smashed the screen which is going to cost £100 to repair. I’m thinking about getting a short term loan to pay for that as I just don’t have the money at the moment with my rent being due and other expenses. Although it is something that you really need to think about as you need to make sure that you are able to make the repayments.
According to the tool, the top employers in the Midlands where I am from are the NHS and Tesco. The average monthly income is £1453.98 and the average short term loan requested is for £325. These requests have been mostly for unexpected expenses (such as a household item like the washing machine breaking down or your car needed new brake pads), to pay the usual bills or for a special occasion.
Have you ever had to apply for a short term loan? What was it for?