Borrowing a quid in time saves nine!

30 Oct

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You must be wondering how this is possible.  After all, how can borrowing money save you money?  It doesn’t really make much sense does it?  But it is absolutely possible and sometimes you can be throwing your money away without even realising it.  Let’s look at a few examples.  How many of us read the small print when we get a credit card or overdraft at the bank.  I found out much to my displeasure that if you overspend on your credit card, that is go over your limit, immediately you are hit with penalty charges.  Now you might say that you didn’t think you could go over your limit on your card.  Well that is what I thought too!  But how many of us know exactly how much we have spent or what our total borrowing is to date.  With the upsurge in the use of online statements instead of paper ones (save the forests) we may not even look to find out!

Only when we eventually get around to it do we see that hideous penalties and interest charges have been added on, pushing up the overall borrowings at an insanely fast pace.  You may even get a blot on your credit file for going over the limit.  The whole process is so fraught with hidden charges it is enough to drive you crazy.  So given this type of situation, could this have been avoided?

The answer to that is yes it could.  Take a look at the websites of various payday loan providers and you may be pleasantly surprised that you can access cash very quickly and know exactly how much it is going to cost you.  Because the site is very user friendly and amazingly simple to use, you can enter a sum to borrow, how long you need it for and see in seconds what it is going to cost you.  When compared to hidden charges thrown at us by banks, credit card companies and building societies, it is refreshingly good to have none of this.  Depending upon how long you need the cash for, you may even find that it is much cheaper to borrow this way.

Imagine that you have had a heavy month expense wise and suddenly realise you are a couple of hundred pounds short to pay you’re your mortgage instalment, due tomorrow.  Payday is next week and you don’t have any savings that you can access in a hurry.  This is a perfect example of when sites like WONGA can literally save our bacon!  Borrow the £200 for a week; pay it back on time and job done.  Your mortgage is safe; you have avoided getting a big black penalty mark on your credit file, missed out on paying the mortgage company all sorts of penalty charges and had total peace of mind that your mortgage account is up to date and in the clear.

The best thing about loans like this is that you are not amassing a huge debt and stockpiling a huge sum of money that you may later struggle to pay back.  You clear the loan off as you go.  In a few months if you have a similar problem, just do the same again.  You are actually living within your means this way and not living on continual credit.

One Response to “Borrowing a quid in time saves nine!”

  1. Anthony August 9, 2013 at 1:15 pm #

    I have just applied for a Wells Fargo Credit Card–I also have a checking account with them as well. Anyways, i was approved for a secured credit card of 800 dollars and denied a personal line of credit? I have to send them 300 dollars for collateral to get my card. Can someone explain this to me more thoroughly. Thank you.

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