You can be good at living a frugal life and save a good amount of money for emergency situations for the future. But life still has its ups and downs, and the “downs” can happen at any time leaving you without enough funds to use in case of an emergency. Not having enough funds to handle emergency situations can be stressful and can sometimes leave you financially drained.
When you’re in need of urgent funding, the type of need usually determines which form of emergency funding you should opt for. In many cases, you might be able to get credit from a traditional lender but that typically takes quite a while for the loan to be processed. When you need fast cash for an emergency, going for this type of loan is simply not an option.
If your need for cash is immediate, the most viable option to get fast funding would be to apply for a car title loan in Toronto. Applying for a car title loan gives you the best chance to get the funds you require immediately and securely. This allows the borrower to get the emergency funds specifically designed to cater for their needs. Read on to see the types of fast funding available for borrowers.
These are loans specifically designed to meet the unexpected and immediate needs for funding. When the need for an emergency loan arises, don’t hold back from taking the necessary steps to handle whatever crisis you may be going through. Emergency loans are an easily accessible way for the borrower to get cash while preventing unnecessary additional costs.
An emergency loan is a form of car title loan that provides a fast solution for immediate funding needs that may arise at any moment. The interest here might be slightly higher than what a traditional lender will typically charge you. But, the immediate nature of an emergency loan makes the added cost worth it.
The payback period for an emergency loan is short. It’s usually one year to one year and a half, depending on the agreed amount. If the loan is not paid as per the agreement, the interest, fees and charges continue to add up until the borrower pays the loan in full. It is therefore important to remain within your repaying means when choosing to take an emergency loan.
Lenders do understand that the borrower may not meet the obligation of the loan and other obligations put forth by them. So they’ve come up with a solution. The borrower is allowed to roll over the whole balance for a month by paying the interest owed on the original amount. However, there are restrictions on the number of times you can roll over an emergency loan and the maximum amount of debt you’re allowed to grow.
Short term loans
Also referred to as installment loans, short term loans are different from emergency loans in that they can be repaid after a period of time. With a short term loan, you can breathe a sigh of relief as you don’t have to repay the loan immediately and you get some ample time to budget on how you’re going to make your repayment without overexerting yourself financially. Short term loans are much more flexible and give control that many borrowers prefer.
As a borrower, always be careful when going for a loan and make sure that you’ll be able to repay your loans without creating more financial difficulties for yourself in the process. Lenders will provide you with all the important information on how much needs to be repaid, and the period of time it will take. All the obligations should be clearly stated and understood by both parties in order to create transparency in the borrowing process.