Loans are often divided into short term loans and long term loans. Short term loan is also often considered also as a payday loan. Short term loans are paid back to bank in a short period of time, and often with way higher interest rate.
The good thing about short term loans, is that they are usually more easier to get than the long term loans. Short term loans are often applied for costs such as car repair or new furniture at home. As said however, the interest rates are often higher and if your salary isn’t too high, you might run into trouble paying short term loan back to bank. Those are some of the reasons why many of us in the end choose the long term loan alternative.
It is not easy to recommend always whether you should choose a short term loan or long term loan. It needs careful thinking about things like salary, life situation, how many members in the family, will there be any other major costs in the (near) future that could affect the borrower. Thus, careful (and sometimes frustrating) thinking is always advised before making a decision about borrowing money. Calculations, calculations and yet more calculations.