Short-term loans

There are two main forms of short-term loan.

The first type is a loan that is taken out over a matter of days or weeks, often then repaid on payday or when pension or benefit payments come in.

The other sort is a loan taken out over a series of months, but generally less than a year.

Short-term loans can offer a good way of getting hold of cash fast, but they are typically expensive compared with other types of short-term borrowing – such as overdrafts or credit cards.

The difference being that short term loans are available to people that do not qualify for credit cards or need more money than their current credit card or overdraft limit will allow.