Short-term loans often get a bad reputation for being quick cash loans with presumably unfavorable long-term consequences. And while there are cases of this being true, it wouldn’t be right to reduce them to just that. In fact, they can be a lifesaver when you need emergency funds for unforeseen events. This is why we’ve chosen to take a closer look at short-term loans in hopes of clearing up any misconceptions people may have about them.
If you want to learn more about this, read on as we discuss the four things that people often get wrong about short-term loans.
Short-Term Loans Are A Debt Trap
There’s a common misconception that short-term loans are debt traps. This simply isn’t true. When you look at it logically, no one benefits when a loan defaults. It just isn’t good business to hand out loans to people that can’t possibly pay it back.
While it is relatively easier to take out a short-term loan or an instant payday loan, this doesn’t mean they’ll just give one to anyone who wants it. In fact, any company that offers loans will first make sure that the borrower makes enough money to pay back the loan.
Short-Term Loans Have Hidden Fees
While we aren’t saying that no company includes hidden fees to their short-term loans, we reiterate that this just isn’t good for business. If borrowers catch on to the fact that companies are adding obscene hidden fees to their loans, then they just won’t use their services again.
This is why our cash loans online don’t come with hidden fees attached to them. We believe that offering the best deals to our customers is what’s best for all parties involved – there’s no point making a quick buck. We understand how important trust is in this type of business, and we’d rather build relationships with our customers to ensure that they keep doing business with us!
Short-Term Loans Are Financially Irresponsible
While we have no control over what anyone does with the money that is loaned out, we are sure that short term loans are not financially irresponsible. In fact, they can be incredibly helpful in cases of emergencies.
To add to this, we actually offer flexible payment plans. We understand that everyone’s circumstances are different, which is why we will work with you to tailor a repayment plan that works best for both parties involved!
Short-Term Loans Companies Are Predatory
Although we can’t speak for everyone, we are sure that there are companies out there looking to prey on vulnerable customers looking for a quick payout. However, we here at Fundo strive to offer borrowers with a convenient option that they can trust. Our goal has always been to provide people with fast and accessible financial solutions with reliable and trustworthy services!
Hopefully, this article has cleared up any misconceptions you may have had about this type of loan. Short-term loans can be quite useful if you ever find yourself in a bind. We understand how unpredictable life is, that you may need money due to an unexpected emergency or accident. However, do remember that borrowing small amounts of many can be expensive, so be sure to only take out short-term loans if you really need to!
If you’re looking to apply for a loan, then you’ve come to the right place. We offer small loans and cash loans online in Australia. Get in touch with us today to see how we can help!
The opinions expressed in the Blog are for general informational and entertainment purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific investment product. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice.