Has The Concept Of Borrowing Money Changed?

Contributed Post

It’s not something we necessarily like to admit, but money dictates everything in our world. Whether you are in a financially stable position or not doesn’t matter. We can all appreciate the value of money.

The harsh reality of modern life is that many of us will need to borrow cash at some stage or another. This could be due to a change of circumstances. Or maybe you have a job, like being an author, that offers staggered and fluctuating payments. Either way, there’s nothing wrong with requiring a helping hand from time to time.

However, it’s important to understand the economic climate at any given time. In answer to the title question: yes, the goalposts have been shifted. Here’s all you need to know about borrowing in 2016 and beyond.

Short Loans Are More Popular Than Ever

Nobody likes to be in debt. Therefore, if there’s a chance to reduce the amount of time spent in the red, it’s important to grab it with both hands. Besides, many of our financial problems are temporary issues caused by unforeseen circumstances. As such, a short boost of cash flow could be all it takes to keep your head above the ground.

Whether it’s avoiding late payment charges, or fixing an unexpected problem with your car doesn’t matter. Taking out a payday loan can be the best solution available. For starters, they provide the flexibility of borrowing smaller amounts. And this means lower overall interest. Moreover, the manageable repayments make it less likely to fall into spiraling debt. Better still, you can escape debt within a much shorter space of time too. Thousands of people opt to use sites like palmaviolets.co.uk to secure their instant loan because a lot of instant loan lenders provide an instant decision too. This means borrows will know almost right away if their loan application has been accepted, making it a quick service too.

The payday loan industry has grown rapidly in popularity over the past decade or so. While some sections of the audience have some very bad words to say about the industry, millions of regular users can’t be wrong.

It’s not for everyone. However, under the right circumstances, it can be the best option out there.

Borrowing Large Sums Is Tough

Choosing short-term loans is often a decision made to suit personal preferences. On the other hand, it’s important to realize that it’s also the only option open to large sections of the population. Markets have recovered from the global recession of 2008, but the fallout is still being felt now. This is especially true when it comes to accessing larger sums of money.

Banks and lenders are far stricter than they were 10 or 20 years ago. Borrowing money for a mortgage or business idea is tougher than ever. If you are looking to do the latter, you will need to build a very solid business plan. Alternatively, you could try other methods such as crowdfunding.


When it comes to mortgages, the harsh truth is that most people are now forced to rent properties for far longer than past generations. Other significant items, like cars, can prove to be rather challenging too. Rather than buying a car on finance, many drivers find leasing to be a better option in the modern market. Given the depreciation of vehicles, it often works out better in the long-term as well as the short.

It’s important to realize that the economic climate will make things more difficult when borrowing huge amounts. This is especially true when you have no track record to back up your applications. That’s not to say borrowing large sums isn’t possible. However, it does make the need to seek the best deal more imperative than ever. Do not forget it.

Application Methods Have Changed

The world is changing, and our generation has seen arguably the biggest shift in history. Technology has altered everything. The internet is undoubtedly the biggest and most significant advancement. It has brought evolution to many aspects of our daily lives, and finance is unsurprisingly at the very top.

Applying for a loan can now be completed from the comfort of your own home. Whether it’s using an internet search tool or a banking App on your smartphone, it’s possible to apply and gain a decision in next to no time. In many cases, money can arrive in accounts on the very same day too.

Lenders will judge you on many aspects, but it would be foolish to rule out the importance of a great credit score. Your history arguably plays an even greater role than ever before. Thankfully, online facilities afford the opportunity to understand those scores. More importantly, it allows you to follow the actions required to put you in a stronger position. In turn, this allows borrowers to seek increased options and greater deals.

The shift towards online applications is best demonstrated by the sheer volume of high street lenders that have closed. One of the most important elements for successful borrowing is to take responsibility for your actions. The internet allows you to assess and enhance your options. In these difficult times, only an irresponsible borrower would ignore this resource.

Different Repayment Options

On one hand, the loan industry has become a fierce arena. However, the increased options means that consumers have the best chance of finding a suitable plan. It will require a little knowledge and research, but the rewards of conducting it is huge.

Knowledge is power. Therefore, all borrowers should take it upon themselves to understand the options. Whether it’s a personal loan or a mortgage, the choice between fixed rate and variable rate can impact long-term financial status.


Needing to borrow extra cash shows that you can never predict the future. As such, it’s important to keep yourself covered. If possible, establishing the potential for a temporary break could be crucial. If you were to lose your job, for example, making repayments would be difficult. Knowing that you have this safety net without needing to take out further debt could be key to keeping your head afloat. Hopefully, you’ll never need to use this form of relief. But it’s nice to know it’s there.

The process of borrowing money has changed in recent times, particularly for the customer. But with the right level of research and understanding, it can be utilized to build a brighter future. The most important tip of all: don’t take on more debt than you can afford.