A story of debt and why short term loans can make sense

Been there, got the Experian t-shirt to prove it

There was a time, only recently, when I was no different to you or any one of the millions of UK citizens living hand to mouth. Many months, those last few days were hell, scrimping on food, drinking the free water at work instead of coffee under the guise of ‘de-toxing’ to anyone who asked and making laughable excuses as to why I was bumming cigarettes off the few people left who smoked. Looking back now, it makes me cringe to think how ludicrous those tales must have sounded.

And there was absolutely no need to be going through that. Not only did the concept of a instant cash loan not occur to me, but I never even thought, that with my poor credit rating having been battered for, well, certainly most of this third millennia since the arrival of The Saviour of Mankind to date, that I could even qualify for one.

There are things you can admit to yourself, like knowing you’re poor with money. But, after applying for your umpteenth short-term loan to be laughed at in the face time and again – that just wasn’t something I was willing to put myself through.

I never even considered that there would be a instant cash loan for bad credit ratings like mine, let alone dream of applying for one. But I was wrong – there are, and plenty of them.

Every month, as soon as I was paid, I’d be in my ‘agreed’ overdraft limit, costing me £1/day. Okay, that doesn’t sound a lot, but on a 31-day month, you’ve guessed it, that was £31 straight out of my salary every month.

Then, there was always one payment that went out on the 27th which took me into unarranged overdraft. At £5/day, some months that was an extra £25 that I never saw. All of a sudden, I could be £50 down before I’d even defaulted on one of my regular outgoings.

Then, as winter approached, there was the boiler. Old, and at least every other year it would need a new flow-valve or some other over-priced component that I’d have no idea if it was faulty or not when the engineer showed it me; all I knew was that some of the mortgage was going to have to be sacrificed to pay for it otherwise I was going to freeze for three months.

Fair play to NRAM, they understood and the difference I always paid back over an agreed amount of months. But those extra months where I owed more than I should, as well as leaving me short a lot earlier in the month (note to self: must buy Tone a sleeve of Marlboro) really increased the interest on the balance of the mortgage.

If any of this sounds like you, just tot up these little amounts: the agreed overdraft daily charge, the unarranged overdraft fee, the late charge on the credit card or store card or catalogue, the unseen interest in addition to these fees – and the bashing your credit rating’s constantly taking, to boot.

Now, compare an instant cash loan here and see how much it would cost you to clear that overdraft, bring you back to a manageable amount on your card or pay off that £25/week shopping outgoing (never sounds a lot when you see those Ugg boots in the Next Directory or on easy payments on the TV channels, does it?), or settle the balance of Christmas that’s now nothing more than memories and hidden, browning needles that stab your foot when you least expect it.

Now, how much is a instant cash loan going to cost you when you subtract that amount from the repayment you’ve been quoted, plus you get the monkey off your back and you’ll start building a positive credit history, providing you keep to your new schedule?

Feels good, doesn’t it? What’s stopping you? Make that first step to a better credit history and resolve not to get back into debt once you’re clear!

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