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Should I Use Short Term Loans to Fund my Hobbies?

All of us have hobbies but some are more expensive than others. Some of us like to watch television, go for walks or spend time with family and these things tend not to cost very much money. However, there are some of us that like crafting, holidays or extreme sports and these hobbies come at a much higher price. Sometimes it can feel like you are always trying to find extra money to pay for your hobby and you may wonder whether it is worth borrowing money to pay for it. You may look at short-term loans as a possible solution. It is good to find out more about short term loans so that you can decide whether they might be a good way to fund your hobbies.

What are short-term loans?

Short-term loans are not quite what they may appear to be. Although the name implies that they are just loans which do not last long, they actually only refer to specific types of loans. There are many loans that may not last long, such as a credit card and overdraft (which can also last a long time if not repaid quickly!) but these are not included. A short-term loan refers to the types of loans where your credit record does not matter and you will usually be expected to repay the loan in the short-term. They include things like payday loans, instalment loans and guarantor loans.

These loans do not specify what purpose they are for, so they could be used to fund a hobby. However, they are often used for emergency payments because they are quick to organise, but that does not mean that they cannot be used for other things too.

Will they work to fund a hobby?

Whether this type of loan will work for you could depend on your financial circumstances. If you do want to borrow the money and have a poor credit record, then it could be the case that you will have no choice but to use a short-term loan for this purpose. However, it is always wise to look at all of your options to make sure that you are making the right choice.

Start by considering how much you need to borrow and see what loan options there are for you in order that you borrow just that amount. Try to avoid a loan where you can borrow more as you do not need more money and you will be paying unnecessarily for something you do not need. Also compare the types of loan to see whether you think that they will provide you with what you want.

Will the loan suit me?

There are a few really important things to consider when you are choosing whether to take out a loan or choosing between lenders or loan types. One is to make sure that you are able to repay the loan. It is so wise to find out how much you will have to repay and when. Then you will be able to look at your finances and work out whether this is something that you will be able to afford. As loans can vary quite a bit, you will find that you can compare them and you will see that some have quite different repayment terms to others. Therefore, you will be able to pick the one that would be the most suitable to suit your budget.

It is always worth also thinking about the lender. Think about whether you are happy with them. Consider what you might look for in a good lender and then you will be able to check this one and look to see whether they seem like they will be able to provide you with what you are looking for.

Is a loan right for a hobby?

It is also worth asking yourself whether it is worth getting a loan just to pay for a hobby. Many people do but that does not mean that you think it is the right thing to do.  It is a very personal decision really. You might think that you are worth it and that you deserve a treat but you may think that you should stick to loans for emergencies or important things. It is very much a personal choice. One way to help with the decision is to calculate how much the loan will cost you. You should be able to do this either by using a calculator on the lenders website or speaking to the lender directly. You will then be able to think about whether you think that what you are buying is worth this extra cost compared to saving up and buying it. You might be happy to pay that extra or you might think that you will wait. Again it is a completely personal decision depending on where your priorities lie with regards to your spending.

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What are the Benefits of Payday Loans?

There are many different types of loans available and payday loans are one of these. However, many people do not know very much about them as they may feel that they are not right for them. Therefore, they may not bother to find out about them. It is a good idea though, to find out about all loan types. This then means that if you are in a situation where you need to borrow some money, you will know what options you have because you have a good understanding of what loans there are available to you. It is therefore good to know what benefits there are of payday loans so that you can decide whether you might like to investigate them further and decide if you want to take one out.

Quick to arrange

Payday loans are relatively quick to arrange compared with more traditional loans. They can sometimes be arranged within a few hours of applying and this means that you will get the money that you need very quickly. This means that if you have an emergency and need to have the money that day or very speedily then these loans can be handy. They do vary in how long it takes for them to be arranged and you will need to check to see how long each one takes if you need a really fast one. You will also need to make sure that you do your comparison research quickly, provide all the information needed and fill out the application quickly so that the process is as speedy as possible.

Quick to repay

Payday loans do not last very long. This is because they have to be repaid in full when you get paid. This will usually mean that they will only last on average a few weeks. It can be a great relief to some people to know that they can take out a loan and know that it will not last very long. Being in debt is not something that some people want to be and so knowing that it will last just a very small amount of time can be something that will make them feel more positive towards it.

Available for those with low credit rating

Payday loans are available to most people including those with a low credit rating. This means that if you are having trouble arranging a loan with another company, perhaps because of a poor credit score, then these loans could suit you. If you keep applying for bad credit loans and being turned down, this will make your credit rating even worse as it will show on your credit report that you have been turned down. Other lenders may see this and decide not to lend to you, even without trying to figure out why you were turned down. Therefore, it can be a good idea to try to apply to lenders that will not turn you down so that it doesn’t have a negative impact on your credit report or to not apply for loans at all. With payday loans the chances of your being turned down are really low and so if you do need money urgently, they could be a good option for you.

Can borrow small amounts

It can sometimes be difficult to find a loan where you can just borrow a small amount of money. It is often the case that a lender will want you to borrow more money than you need and then you end up having to repay it over a longer time period or making larger repayments. It can also be more expensive because you have the loan for longer. Even a loan which is flexible so you can borrow small amounts such as overdrafts or credit cards are tricky because you have normally have access to more money than you need and therefore you can be tempted to borrow extra. Therefore, having a loan where you can just borrow a few hundred pounds can be really useful as you will not have to borrow more than you want to.

As you can see there are many things which will set payday loans apart from any loans. Whether they will suit you will very much depend on your financial situation and your lending requirements. However, once you have decided if you want to borrow money and how much you need, then you could consider a payday loan if it fits with your requirements. It is always wise to make sure that you are able to repay the loan but if you just borrow a small amount then this should be okay especially as you will be repaying in on the day that you are paid. So’ when you are looking for a loan make sure that you consider a payday loan as it could fit closely to your specific needs.

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