When we’re looking for a loan, we don’t always want the moon on a stick. We may not need the constant and tempting companionship of a credit card. Or the carefully thought-out, long-term planning that comes with applying and paying one back. The same applies for any other form of long-term loan too such as an overdraft.
Credit like this requires for us to go through several stages. Our application may also require us to sit down with our personal banker or a company representative to give an account of why we need the loan, what we’re going to spend it on and how we intend to pay it back. Then they need to then go away and approve the decision, and we may also need to fill out a lot of paperwork too. It’s not a quick and easy process. While granted in recent years the process has become a lot more streamlined, even applying for a loan or credit card online is a task we need to sit down and give a lot of energy and focus to.
Long-term credit is usually for amounts over £1000 or higher, forcing us to take out more credit that we need. This of course, tempts us to use it, which is exactly what the creditor wants us to do. But most of the time this isn’t what we’re looking for. A large long-term loan or credit card isn’t always suitable. Sometimes we just need a modest amount to handle something immediate, then we can pay that back at the end of the month once we get paid.
A smaller loan of £200 can sometimes be more than enough to get us through our current turbulence. This is usually an ideal amount, it’s not too much to cause us significant difficulty in the future and its often just enough money to get us out of whatever predicament we’re in.
Those who apply for a £200 loan are usually not looking for any more than this simply because they don’t need it. What they do need is a quick injection of cash to get them through their current predicament. They would wait until payday, but for whatever reason they need the cash sooner and don’t want to be saddled with any long-term debt. This is a completely understandable position, and one many of us have found ourselves in before.
When disaster strikes, many of us don’t have the time to make appointments with our bank or wait on hold for 40 minutes to a finance company. We need immediate action, a solution to our issue. Then we can breathe, take stock of our situation and plan how we’re going to pay our creditor back once the issue is resolved.
As an example, imagine you’re got burst pipe in your house. This is something you need to resolve quickly, and time is of the essence, waiting a week until payday isn’t going to work. The longer this pipe is spewing dirty water the more damage it’s going to cause. It may have already done plenty of damage, but you know your insurance company will help when the time comes.
This is a problem you couldn’t possibly have anticipated and the priority is plugging the leak, everything else can wait. Your local plumber offers to come and fix it, but for the parts and labour it’s going to be several hundred pounds. You’ve got most of it saved but you’re short of £200. You don’t have a credit card or overdraft and while you consider his offer the water is still pouring. Of course you’re going to agree to the plumbers terms, you don’t have much of a choice.
This is exactly the sort of scenario that a £200 loan is designed for. A problem has arisen and needs to be resolved as quickly as possible. In the above example waiting until pay day simply isn’t an option. Sitting on a burst pipe for longer than 24 hours could cause catastrophic damage to a home.
Of course this is just one example, there are many cases where time is a factor. £200 loans can be approved within minutes and the money transferred. In this situation the person in need can resolve their issue and pay the money back at their leisure. Just knowing this support system exists is often enough for most people to feel more relaxed should a crisis unfold around them.
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