If you are a homeowner, then the time might come when you want to make some changes. It can be all very well living in your home. But if it isn’t how you like it, or it is falling apart, then it won’t be ideal. Home repairs can cost a lot of money. You might need to extend because of a growing family or have something important like the roof repaired. If saving for something like this could take you years, what are your options? If you’re employed and can make repayments, then there are a few.
One of your options is short-term, unsecured loans. Any kind of borrowing can have limitations and benefits for the person borrowing. So today, we will just go through the pros and cons of taking out a short term loan that you might take for home repairs.
The Pros
First thing is first, the biggest plus about a short term loan is that you get the money quickly. You are getting the money when you need it. So that has got to be the best things about it for you. You can get on with home repairs or pay off a chunk of bills if they have been piling up. This type of loan can also go easy on your credit rating. Longer term loans, like a mortgage, are the things that lenders will really look into. So if your credit rating isn’t great, it most likely won’t be a factor. So it certainly makes it easy to borrow the money.
At the end of the day, being in debt is a headache. It is a nuisance that we all want to be rid of as soon as possible. If you are of the same opinion, then short term loans are a good option for such borrowers. When setting up the loan, a time frame is set, and there is a degree of flexibility with that. You can choose how much you pay back and when.
The Cons
Because these loans are relatively ‘easy to get, lenders take advantage of that. They know more people will be after them. It will, of course, make them money then. So as a result, the interest rates can be high. Longer term loans often have much lower rates but are to be paid back over a longer time period. So you need to check what you will be paying back in total. Often these things are quite transparent, so it is fairly straight forward about what you will owe.
Being able to get your hands on money quickly can become quite addictive, which sounds like an odd thing to say. But using short term loans can become a bit of a habit. So you’ll want to make sure that you don’t get in the habit of just turning to a short term loan. Ideally, it should only be used in emergency situations to help you out. But they could be an option every now and again.
