Have a New Year Resolution to Minimize Debt Burden with Short Term Loans

New Year is the time for new resolutions. We all hope for better health, wealth and relationships as we welcome the new month every year. However many of us fail to live up to the spirit of these resolutions and get stuck somewhere in the rut of failed promises and broken finances. It is easier said than to manage your low credit score. If you look at the burgeoning debt burden on UK households, the situation would look even grimmer.
personal Loans

However in this article, I am writing to help you make an achievable promise for better financial management this year. Rather than making a tall claim to get rid of all of your debt in 2018, you can at least make a vow to keep borrowings low. You must make a promise that you would stick to short term personal loans for your needs and ensure limited exhaustion of your credit limit.

There are many benefits of borrowing small loans as compared to long term loans.

1.    Faster Money: You get faster access to loan amount as small loans are processed faster as compared to long term loans. There are less hassles including lesser paperwork.

2.    Less Interest: When you borrow for short term you save enough on loan interest as the cost of loan increases with duration.

3.    Easy to manage and repay: It is always easier to manage small loans. Lesser is the loan burden, lesser is the stress to arrange for repayment funds.

4.    No collateral required: When you need to borrow for small period you generally do not need a guarantor or collateral to get the loan approved.

5.    Build score: As short loans offer you ease of loan repayment, you can use these loans to improve your credit score. By repaying your loan on time you build a good credit score.

Whether you are a self employed individual or a full time employed individual, opt for short term loans in 2018. Even if you are a student short term loans should be your only saviour. You need to stay away from high cost cash advance loans like payday loans. If you fail to become eligible for an instalment loan, consider using a professional loan advice for the same.

All in all, your New Year goal should be to save as much as possible on loan interest rate and processing fees. Besides you must adopt some good financial habits to stay afloat this year. 

Building up an emergency fund is one of the sure shot ways to improve your cash situation. You can use a Glass Jar Method for this. You can keep a small glass jar in the middle of home to remind yourself of your goal to save every day. 

You simply need to add some money in the jar on a daily basis. Make a vow to save at least a pound everyday and keep it in the jar. As the jar fills up, you can take out the money to prepay your previous outstanding loans and bills or use them for additional needs (this will check the need for further loans). Both ways you would reduce your debt burden. 

Gradually by the end of the year 2018 I hope you could confidently plan for debt-free 2019.


0 Comments Write your comment

    1. Loading...