Short term loans are becoming increasingly popular as borrowers decide that they don’t want a debt hanging over them for years. There are a range of different short term loans available, including 1 month, 3 months and 6 months terms. All of these loans require that the borrower pay back the loan within the short time frame, or suffer high penalties and increased fees. If you are looking for 6 month loans, and want to be able to assess which one is right for you quickly, then it may help you to understand what type of 6 month loans are available to borrowers.
There are a number of lenders that offer 12 month loans to their customers. The first group of lenders is payday lenders. These are the most common providers of 6 month loans, but many people are distrustful of payday lenders due to the high rates of interest that need to be paid during the loan period. After one month it might not matter too much, but several months can be very costly. However, if you feel confident that you can repay the loan on time, these are the best type of 6 month lenders.
There are also other lenders that offer short-term loans which can extend to 6 months. Logbook lenders are another alternative to payday lenders, and as long as you own your own vehicle, you should be able to get a significantly larger loan than those offered by payday lenders. Interest rates are also lower, though not as low as a bank or credit card loan. Repayment schedules vary from 1 month to 4 years, so you can choose to make the repayments within 6 months if you require.
Although it may be possible to get short-term loans from banks in other countries, at the moment in the UK it is not possible to take out a loan for such a short period unless you choose your overdraft. This has several advantages, in that you already have an account, and so extending your overdraft is usually just a matter of talking to the bank. The overdraft can be repaid in 6 months if you wish, or can be extended for longer periods until you feel able to make the payments. However, failing to repay the overdraft can get you into financial difficulty very quickly, and you need to keep an eye on overdraft charges, since they can be very costly if you take out more than you are allowed. In addition, bank loans and other high street lenders will be more reluctant to offer you a loan if you have bad credit, or are unable to offer security in exchange for the loan.