There are many people who think that short term loans are a really bad thing. They feel that they are too expensive and risky and they would not like to use them and think that other people should not. However, we are all different and they can have advantage for many people. It can be worth knowing more about them to see whether they are something that would ever suit you.
Often a short term loan can be made available to people who have a poor credit rating. This means that they may not have any other way to borrow money. Although some say that this means that they are lending to the most vulnerable, it does provide a way for those who really need money and have no other way to get it. It could prevent people from becoming homeless by allowing them to pay rent, stop them having utilities cut off as they are able to pay their bill or provide them with much needed food.
The short term loans are also really quick to arrange which means that they can help anyone get a cash loan in an emergency. If they have a maxed out overdraft or credit card or do not have one, there may be no other option for them but to find the money elsewhere. If there is an emergency and money is needed really fast, perhaps to replace a broken white good, buy food or pay a bill, then this can be a really useful option.
Some people like a short term loan over using other sorts of loan because it does not last so long. Having a short term means that it will have to be paid back in a few weeks or maybe months. This can mean that you will not be in debt for long as you will quickly repay the loan. It can be a relief knowing that you will not have that stress of knowing you owe money hanging around for too long.
A short term loan is usually only for a small amount of money. With credit cards, overdrafts and personal loans, you usually get offered a much bigger sum. This can be really daunting for some people and means that they will have to pay back a big sum of money over a long period of time. If they only need a small amount of money, it can make much more sense just to get a short term loan and then you will not be so tempted to borrow and spend more than you needed.
It is therefore best no to totally dismiss the short term loan if you need to borrow some money. Compare it with the options that you have available and then see whether it is something that you want to use. As well as comparing the price, consider the speed to arrange, repayment time and how much you need to borrow to see whether it is something that might work better for you.