Get the low down on short term loans in Ireland
With the banks tightening their belts as much as regular punters, it is getting harder and harder for people on low incomes to find the right terms for loans. In many cases banks simply don't want to take any risk, making it almost impossible for some to get the money they need.
If you have found yourself in a similar situation, then it's possible that you have considered one of the companies offering short term loans in Ireland. These companies traditionally offer customers small sums over very short periods, but with incredibly high interest rates.
In recent times you have no doubt noticed the increase in adverts for these places, either on television or in print. They certainly seem like an interesting proposition, but are they too good to be true? We decided to take an in depth look at how they work.
The premise is very straight forward. These short term loan companies, often referred to as pay day loans, have been very popular in the poorer areas of the United States for quite some time now, and it was only a matter of time before they started appearing in Ireland. They promise you hassle free loans for small amounts, usually from €100 to €1,000, but rarely anything more than that, over very short terms.
The typical length of one of these loans is usually one to two weeks. Rather than being intended for you to take out money for things like home improvements or holidays, they are instead there to help you plug any immediate financial troubles you may find yourself in.
For example you may need emergency repairs to your car, but you don't get paid for a week and have no spare money to pay the mechanic. In this case, short term loans are fine. You'll most likely end up paying interest in the amount of 20-30%, but if used sparingly they can go a long way to helping relieve some pressure.
The danger is that you take a loan but cannot afford the high interest. This can place you in a downward spiral of financial despair that grows worse with each passing week.
The bottom line is that these loans should not be used, in any circumstances, by anyone with severe financial problems, the unemployed, or those who cannot afford to pay them back in full within a week or two.