Whenever we purchase something new, our usual wish is to own it in full, as soon as possible. When the item we’re purchasing is something that loses value quite quickly, then the desire is even stronger. This is particularly the case with cars, as none of us want to continue paying a high rate for a vehicle that’s dropped in value, or worse, that has broken down or even been in an accident.

If you’re thinking that way and feel like taking a look at short term car finance, then we recommend thinking again. The problem is this. When you borrow more than you can comfortably repay each month, you risk getting into a very tricky situation. Not only are you faced with going short in other areas so you can make those higher monthly repayments, but you’re also facing a bad credit rating if you default on the loan.

As the financial pressure builds, desperate people do desperate things. Some people will take out another loan to pay off their car loan, getting themselves into a worse financial situation. Repeat borrowing is a great arrangement – for lenders. For the borrower, it’s a matter of jumping into a hamster wheel they’re unable to jump out of.

Frequently people take out a short term loan from a website, a store at the run down end of the high street, or a bank that not many people have heard of. It’s a handy solution, usually “just until things pick up a bit”. Right. The lender’s requirements may be a bit skinny – little more than a bank account and some proof of income are asked for. In exchange, the loan invariably comes with stiff fees and high interest rates.

If you’re the borrower, you’re borrowing from Peter to pay Paul, as the saying goes. You’re simply putting off today's problems until tomorrow.

If all this sounds unpleasant, that’s because it is. The best course of action, you’ll not be surprised to hear, is to avoid getting into that situation in the first place. When looking for car finance, only borrow from a responsible lender who will help you to assess how much you can afford to repay.

Running through your outgoings may sound tedious, but it will save you a lot of pain in the future. While interest on repayments may amount to a higher total on longer term loans, the individual repayments you commit to are usually smaller and more manageable. With no financial pressure, you’re left free to enjoy your new vehicle, with all the fun and none of the fear.