Short or long term loans?

There are more and more loans on the market every day. There are so many offers that we often don’t know which one to choose. We usually have short or long-term loans to choose from. Before deciding to take out a loan, you should examine the pros and cons of each of the options available.

Remember that the loan should primarily be tailored to your needs. It serves to help you and not to cause you further financial problems. To help you choose the right loan, Good Finance Now the team will provide you with the characteristics and pros and cons of short and long term loans. We hope that with our help you will make the right choice of the perfect product for you.

Short-term loans

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Short-term loans have a short repayment period, which is usually a maximum of 3 months. In addition, it is a product that is designed to help us in crisis situations or sudden, unforeseen events that thwarted our plans. Such problematic situations can be e.g. a washing machine or car breakdown. The amounts of such loans rarely exceed USD 3,000, and the entire granting process is instant and 100% online.

However, their short repayment time can cause problems for many of us, because we often forget about their repayment, or we are simply not able to accumulate a given amount of money on time. Before choosing this loan, you need to know if it can be extended if we are unable to pay it back within the specified time limit and if it involves additional fees.

Some of us treat payday loans as a solution for every sudden need for cash: when we need money for new shoes, a holiday trip or a language course for a child. This is a fundamental mistake that many of us make. We borrow too much and as a result, loans become a burden for us and our debts are gradually growing.

Long-term loans

Long-term loans

In turn, long-term loans are those with a repayment period of more than 6 months, and in some loan companies, it can even reach 48 months.

The decision to choose this type of loan is usually more thought-out due to its long repayment period. It also involves a greater commitment for which we must be ready before signing the contract. The amounts of such loans are much higher than short-term loans.

We use these services when, for example, we plan to buy an apartment or home furnishings. This is a serious decision because we will be charged with the loan for a long time and therefore we must be sure that we will be able to pay it back. There are no hasty and spontaneous decisions in such loans.

The amounts of these loans are too high to afford. Due to the long repayment period of these loans, we need to find out all the details related to the installments and how they will change over the months or years.

In addition to promotions

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Some companies offer decreasing installments. The differences are usually small, but as we know, every penny counts and it is not worth overpaying for a service that may be cheaper at another loan company.

We are sure that now the difference between short and long-term loans is clear to you and before any decision on choosing a loan you will take a moment to choose the best offer that will meet our expectations. We invite you to familiarize yourself with the offer of quick loans Good Finance Now, you will definitely choose something for yourself!

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