Charles Dickens

What The Dickens are Short Term Loans?

Since many of our cash requirements are of a short term nature, it makes sense to try to address those requirements with a short term cash advance or short term loan but, until recently, these have been difficult to come by.

Many lending institutions do not lend for short periods at all, it just isn’t a part of their business plan. Ask your bank, the one with whom you have your current account, and they will, in all likelihood, suggest that you apply for a bank overdraft to see you through short periods when you might exceed your account limit.

In some cases an overdraft is appropriate but, as the banks themselves are the first to admit, they are not really the best solution to this type of borrowing. If you are over your limit for just a day or so then an overdraft will probably fit the bill but if you need the funds for longer then you are advised to avoid them

Short term loans – why do we need them?

If we take a more in-depth look at why short term loans become necessary in the first place, then it becomes clear as to why an overdraft, or indeed the other much used alternative, the credit card, are not the best solutions to these requirements for short term finance.

Most of us are able to plan our budgets to take account of our likely income and outgoings. If we are wise, then we try to set a little to one side for contingencies because, as everyone knows, unexpected expenses have been known to pop up out of the blue and leave you wondering where the money to pay for them is going to come from.

Everyone would agree that such a plan is a solid one – put a little money aside each week or month and then you will have the funds to deal the unexpected when it inevitably happens. Planning for a “rainy day” makes sense and everybody knows it. So why then, doesn’t everybody actually do it?

The answer is well-known to anyone who has tried it, and failed. We tend to live right up to our means or slightly outside of them if the truth be told, much of the time, and not everyone has thousands of pounds of credit going spare—maybe due to historical bad credit issues.

What The Dickens did the Victorians know about short term loans?

Charles Dickens is usually good for a quote in most situations and he certainly doesn’t let us down when it comes to money.

Mr Micawber was a character in Dickens’ famous, and much-loved, novel David Copperfield. His most famous and very appropriate in the context of this article, quotation about money is one which hits the nail right on the head; “Annual income twenty pounds, annual expenditure nineteen pounds nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

Mr Micawber’s formula for happiness sounds simple, doesn’t it? You spend what you get, nothing more, and happiness is your reward. On the other hand, if you spend more than you get then the result is not likely to be so happy.

In principle nothing has changed, the basic theory still holds good. Sooner or later, the amount that you spend has to equate to that which you are able to earn. The only thing that has changed really is the timescale.

In Dickens’ day, very few people would have the means to buy a house, and the opportunity of owning a car simply didn’t exist as they hadn’t been invented then. The nearest equivalent to a motor car would have been a horse, and owning one of those was certainly only for the tradesman who needed it for his business or the well-to-do Victorian gentleman who had the means to buy and look after such an expensive mode of transport.

Dickens’ advice still holds true

Now, although most of us agree in principle to the basic premise that you should only spend what you earn, or otherwise have, sometimes there are inconvenient peaks and troughs in the supply of, and demands upon, our cash.

It is for this reason that we sometimes find, despite our best intentions and careful planning, short of a few bob – for a few days. This is the situation that many of us have to deal with and, when we do, the question of short term loans and other such “quick fix” solutions come to our attention.

Although most of the larger high street lenders do not cater for this need, luckily, many lenders out there do. Short term loans are now widely available, even for those with less than perfect credit. So how do you go about getting one and are you likely to be eligible?

A walk down any busy high street will provide at least half the answer. There are certainly businesses out there that will advance you some cash for a short period, in exchange for a fixed fee. This type of arrangement is normally only intended to be for a short term and these short term loans can often be arranged within a few days if not the same day. For many, these outlets are ideally placed and fit the bill in every way.

Short term loans – the truth is out there

For others, however, with busy lives that lack the necessary time to walk up and down the High Street, there is another, more convenient, solution. Short term loans can now be easily and quickly arranged on the Internet. The time of the online short term loan has arrived at last.

These short term loans, often also referred to as payday loans, can be found and applied for when the need arises— anytime, anywhere, from any device. There will usually be several providers to choose from and, as with anything, it pays to shop around. Make sure that you know exactly what you are borrowing and how much has to be paid back by what date. Normally, these loans will be synchronised to your payday so that the lender can take payment as soon as you have the money in your account.

If chaos breaks out in your world, albeit only for a day or so, consider the power of short term loans to restore normality and get things back on track.