There are some loans in life where you need to look to pay back the money over a lengthy period of time. The most obvious example of this style of loan would be a mortgage. Given the sums of money involved with buying a home, it is only natural that you would be looking at a period of over 20 years to even contemplate paying back the sort of money that you need to pay off the loan. There are also loans that can be used for home improvements or even buying a car that you would be looking to pay back over a couple of years.

When you take a loan over a longer period of time, you may be at a greater degree of risk that your circumstances may change, but this is something that can be factored in for this style of loan. If you are looking to make a massive purchase in life, a long term loan is often the only way that you can achieve your aims and ambitions.

There are also plenty of times when a short term loan is the preferred option. It may be that a bill has cropped up expectantly or you find yourself needing money at very short notice. If you are unable to borrow the money from a loved one and you are unable to obtain finance from a traditional provider such as a bank or building society, there are places where you can obtain a short term loan.

Short term loans are available in a number of ways

When most people mention short term loans, they will think of payday lenders. The payday loan industry has rocketed in popularity and prominence in recent years, but this isn’t the best solution for most people. The APR that is associated with payday loans can be extremely high, which means that you will end up spending a considerable amount of money in paying off the loan. When you attempt to do this in the short term, you may find that you struggle to pay back the loan in the manner that you intend to.

This is why guarantor loans are the best short term loans for many people. A guarantor loan, where someone is willing to act as a guarantor for your loan, is offered at a much lower rate of APR, which means that it is available with a lower rate of interest. This means that you need to find less money to pay back, which is definitely a positive thing for most people.

If you find yourself in need of a short term loan, don’t panic, and don’t assume that a payday loan is the only option available to you. Opting for a guarantor loan will be easier on your finances and it should help you to maintain a better equilibrium with respect to your money in the short and long term.