When should you take out a short-term loan?

Payday loan providers frequently attract bad press, but they can be extremely useful if they’re used in the right circumstances.

InstantLoansDirect.com is one of the new entrants to the short term loans market and it recently released advice on when short-term loans are a good idea and when they should be avoided.

The company stresses that instant cash loans should be used carefully and because it wants to be an ethical lender, it conducts employment checks and makes sure applicants do not have any other outstanding short term loans.

InstantLoansDirect.com says situations where an instant cash loan could be effective include unexpected bills and household emergencies. Also on the OK list is the payment of car repair bills and travel emergencies.

However, people should not rely on same day loans just to pay for a night out or a new outfit to wear for a party. Furthermore robbing Peter to pay Paul is not the way to go so don’t borrow money to settle another loan. It’s also not advisable to take out a short-term loan to buy gifts.

Giles Coutts, the company’s founder, said he was keen to ensure that people understand when it is a good time to borrow and when it’s not. Potential applicants should always ask themselves whether the situation is an emergency and whether they can repay the loan by the deadline. Answer ‘yes’ to both those questions and obtaining an instant loan could be an ideal solution.

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