What are the interest rates?
Interest rates on short terms loans are usually very high. Although these loans are designed to let you repay over a longer period than a payday loan, repaying money at such high interest rate can cause serious financial difficulties.
It’s important to know how much a short term loan will cost you and how much interest you’ll pay back over the duration of the loan. As a guide, if you borrowed £600 for 12 months and pay it back on time, you’d repay approximately £1100.
What happens if I fall into arrears?
If you miss payments on your loan, extra interest and charges could be added to the debt. If you don’t catch up with the payments you’ll get a default notice. This means that the creditor can take further action, such as passing the debt to a collection agency or taking court action.
It’s important that you take steps to deal with the arrears before the situation gets worse.
Struggling with a short term loan?