Payday loans are a great option to use from time to time when there is an urgent need for a small amount of cash in your bank account. But problems can arise if we need to take out another payday loan as soon as we have paid it off. The next thing you know is we are stuck in a cycle of regularly using payday loans to manage our day to day finances. This is not a good place to be. Payday loans are expensive and can cost us $100 or more per month just to keep afloat financially. The good news is a medium term loan or Handy Little Loan from Acorn Finance can help you break the payday loan cycle. Read on to see how it works.
Medium term cash loans from Acorn Finance are for larger amounts at a lower interest rate, and the repayments are over a longer period. This means the loan does not cost you as much and the repayments per week or month are less, giving you extra cash available each pay day to spend on other things. For example, if you borrow $800 as a medium term loan, the repayments over 10 weeks are $191 per fortnight, making a total payment amount of $955. Compare this to a typical payday loan for the same amount you would pay back more than $1150. Therefore, a medium term loan instead of a payday loan will save you nearly $200. This $200 would be a great help if you are financially stretched.
Just be aware that medium term loans are for a longer period so there is no regular cash injection into your bank account that you get with a payday loan. So, some discipline is required to not borrow another loan during the loan term. In some circumstances you may be eligible for a top-up of your loan, especially if more than half of your original loan has been repaid.
Once you have broken the payday loan cycle, you will find a lot more money available to spend on things for you, rather than paying interest and fees to the lender. It can work for!
Why not apply for a loan with Acorn Finance – it may be just what you need.