Wednesday, January 19, 2011

When Short Term Loans Can Help Ensure Long Term Financial Stability

**The following is a paid advertisement. Sacramento Real Estate Statistics has no direct affiliation with this company.**

Major corporations do it and so can you. Short term loans are used throughout the world by companies and people for all kinds of reasons. Sometimes corporations use one to buy something they will sell in a month or two. Wealthy individuals might take out short term loans because most of their money is locked up in longer term investments.

Most working people take out short term loans through a paycheck advance. This is because they need money to cover a short term need, too. That might be replacing a broken appliance, fixing a car, covering a child’s medical expense or taking a trip to see family.

Basically, the uses for short term loans fall into three categories:

  • Take care of an emergency – No one can predict when a difficult and unbudgeted expense will fall into their life. By being able to borrow against future income to cover the expense, that emergency is less of a headache.
  • Shore up your credit score – Everyone knows that paying bills late can result in dings to their credit rating. Your credit score has no impact on your ability to take out a payday loan, but with that loan you might be able to improve your score over time.
  • Make a timely purchase – If an item is on sale, the savings might be greater than the cost of a short term loan through a payday advance lender. So by the numbers, a short term loan can add up to money saved.
For working people who can get a payday advance, it should always be regarded as a short term loan. The interest charges and other fees would add up over time when it is not paid back in a timely fashion. But when it is paid back quickly, the short term loan can be a smart, responsible action on the part of the borrower.

No comments :