Personal Finance

How to Get a Short Term Loan without Paying Back an Arm and a Leg

Why a Short Term Loan?
When people need money for a holiday, to refurbish their homes or even to pay for their children’s school fees, they often consider getting a loan. Depending on the institution with which they bank and their financial history, the bank will advise them on which kind of loan they can get and the best to suit their needs. What people sometimes do not factor in however, is that a bank is a business and as such, needs make a profit. This is not to say that the bank would give a client the incorrect advice but when someone needs to pay an immediate bill, why would they choose to take a long term over a short-term loan?

Short term loans are a very effective way of paying for immediate expenses such as unexpected medical bills, but people seldom know how or where to get them. A short term loan however, can be both a very effective means of subsidising one’s income and a way of ensuring that there are no long-term debts attached to one’s name. A short-term loan allows a person to take money for a short predetermined period. What they choose to do with the money is up to them but they need to commit to a payment plan with interest that will give the lender a return on their investment, as well as their initial investment back.

Where Else to Look
Anyone who is a little financial savvy should be aware that a short term loan comes with a high interest rate and this means that it should not be taken unless absolutely necessary. A short term loan then should only be used to pay for small expenses that have not been budgeted for, but that are very important and that the person cannot possibly pay in instalments or put off for the short term.

So perhaps you may not have the perfect credit score, and perhaps you haven’t thought of leveraging your assets against your loan. If you have some valuable personal assets that you could use as collateral to bypass the bank fees and high interest rates, finding an independent loaner could be your godsend.

Some of the assets that would be accepted include:

• Luxury watches – these include Rolex, Tag Heuer, Omega, Cartier etc.
• Gold and precious metals – these are valued in weight, so your items may even be broken and will still be accepted.
• Jewellery and diamonds – these are also appraised according to weight and quality.
• Fine art and antiques – factors that are considered here include the artist, the year, the provenance, the rarity, the condition, and both local and international market trends.
• Cars
• Fine wine collection

If you do not have it in you to permanently part with these items, you can simply use them for the loan and then have them returned to you after paying back the loan and interest within the predetermined amount of time (these rates are expected to be significantly lower than what you would get with a bank).

As long as you do some background research, you can expect fair valuation by professionals, your loan amount in your account within 24 hours of getting your offer, minimal fees, low interest rates, and the knowledge that your assets are safe and secure.

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