The demand for short term loans just shortly before and directly after the Christmas season this year is predicted to grow rapidly by the hundreds of thousands, with instant cash loan companies gearing up to provide the best value for their customers, experts say.
However, a number of financial advisors have begun to warn against taking out instant cash loans, since many major retailers have been predicting that household finances will be stretched to the breaking point this coming festive season. Around one out of every three of Morrisons’ customers have little to no disposable income remaining by the end of the month, the supermarket chain said, as one example of how hard-pressed British families have become due to the increases in the cost of living.
This has paved the way for instant cash loan companies to provide much-needed services to these households, allowing families to take out short term loans in order to cover these monthly expenses until they have the money in their bank account from their next pay cheque. More than two million households in the UK may already be taking out these quick loans, according to leading lender Ferratum, who just opened its doors in the UK this past July.
Sales and marketing manager for Ferratum’s UK division, Ian Porter, remarked that short term loans may very well be the quickest growing sector within the financial services industry, citing the flexibility of these loans as one of their key selling points. Customers have more and more decided to turn away from traditional lenders and their l0ng-term loans, many of which will invariably require a credit check – and in the current economic landscape, that fact puts longer-term loans out of reach for many.