Four reasons to opt for short-term borrowing

Wednesday, 25/03/2015

Not only is short-term borrowing a popular option amongst many people who find they need a little extra financial assistance, it is also often preferable to credit, which involves a lengthy repayment period. There are now even more payday loans to choose from, as many new payday lenders are appearing as the market expands. If you're considering short-term borrowing, take a look at four reasons why a short-term loan is often the best option.

Done and dusted

If you take out a long-term loan for a new household appliance, some furniture or a holiday, chances are you’ll still be paying it back when the goods have been discarded and the holiday is no more than a distance memory and some photographs. Short-term finance is rapidly paid back, leaving you free to move on.

Designed for emergencies

Credit from new payday lenders is designed as a rapidly accessible product that gives you cash when you need it. Ideal for unexpected changes of circumstances or a domestic emergency.

Costs less

Many people end up paying more in interest with longer term borrowing (especially credit cards), as they just pay the minimum each month, accruing significant amounts of interest over time.

No temptation

Credit card companies know how hard it is to resist spending any additional cash that comes your way, particularly when you’re on a tight budget. It’s no accident that after a few months of making repayments they will often raise your credit limit, putting temptation in your way. Don’t fall for this old trick! A short-term loan, promptly repaid, helps you stay on the budgetary straight and narrow.

Whilst short-term borrowing should only ever be used for necessary purchases and is not a substitute for sound money management, it does offer several significant advantages over long-term options. If you’ve got an emergency on your hands and are confident you can stick to the repayment schedule, a short-term loan is frequently the best option.


Payday loans are not suitable for, and would be expensive as, a means of longer term borrowing and are not appropriate if you are in financial difficulty.

Representative 1269.7% APR


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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk