emergency loansLife is good, there’s plenty of money coming in and your finances are under control then, from out of the blue, a crisis hits that completely blows the budget and leaves you scratching your head as to where to find the emergency cash you desperately need … sound familiar?

We’re all affected by such a situation from time to time – usually when we least expect it and at a time we need it the least. The car breaks down, the heating packs up, you need to make an unexpected trip … the reasons are many and varied but the result is the same need to find the cash – and fast!

A short term instant loan offers a solution – we’re not saying it’s the right solution in every case but nevertheless it is an option. They’re growing in popularity and are wrapped up in fancy packaging with catchy names and advertised everywhere you turn – TV, radio, newspapers, online … even on football shirts!

As you’d expect, the focus of these emergency loans is speed of delivery and because of this the application process is made as simple as possible – an online application form, basic eligibility criteria, affordability check and the means of automated repayment that can be set up in advance. Typically you’ll need to be 18+, a UK resident, have a regular income and hold a bank account plus debit card. Some lenders will also require you to own a mobile phone. The application will also require you to decide how much you want to borrow and for how long and that’s pretty much it – fill in these details, press send and sit back for a very short while until you see the accepted message after which you will receive a full quotation before you decide if it’s right for you.

Accept the emergency loan offer and the cash is instantly transferred to your bank account – the whole process can actually take as little as 15 minutes although some lenders take a little longer but most will at least complete the same day … it’s that fast.

Instant loans are not available in large denominations but they are fast and lenders seem to be competing with each other as to just how fast they can be delivered. Typically you’re looking at small loans from £50 is and up to around £1,000. The actual amount will depend on the lender and your personal situation but you’re not going to get much more than that in an instant though.

Such loans are not designed for the long term either but as a short term fix to bridge a financial gap. The term will be from a few days to around a month after which the loan will need to be repaid, in full, plus interest which will probably be pretty high. The repayment date can usually be set to a convenient time, often to coincide with the next payday.

This may all sound like a simple, fast, emergency fix but you must always think very carefully because whilst it may seem like a great option interest rates may well be high and then you need to remember that the loan need to be paid back in full in just a few weeks time. What happens then – will you be short of cash next month, will you need another loan to fill that financial void again and, if so, what happens the month after that and the month after that … if that’s the case DON’T DO IT!

Think about other option – talk to your bank about an overdraft or suchlike, talk to your employer about an advance on your wages (sure, that too will need to be repaid but won’t cost you the interest in most cases), talk to family or close friends, or sell those unwanted possessions – it’s easy and fast these days via online auctions or car boot sales and it’s amazing what sells.

If you’re on benefits you won’t get an instant loan through a mainstream lender but if there is a genuine emergency help is available in the form of a Budgeting Loan to help pay for the real essentials like rent, clothes etc. These loans are interest free and repayments can be spread over 2 years. Contact your local Jobcentre Plus to find out more and to apply.

So, when one of those unexpected money emergencies leaves you short of cash an instant loan provides an option and access to short term cash fast but think very carefully as it may not be the right option. It’s never the only way out, there will be other and maybe better ways so only go for an instant emergency loan if you’re absolutely certain it’s ideal for your needs and circumstances.