Short Term Loans

Written by Serena Berger
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Short term loans can help you take care of any number of situations that occur only infrequently but can cause a lot of stress when they come up. For example, moving is so stressful that many people get physically sick when they have to deal with it. The physical and emotional strain, combined with the financial burden, take their toll quickly, and people find themselves quite ill, often at a time when they can least afford to lack energy and clarity.

If you are a young professional or student renting an apartment and you want to move, you may be unprepared to deal with expenses that come with moving. Typically your new landlord will want you to pay your first and last month's rent and a security deposit, and all while you're still paying rent on your old apartment. Then, add the cost of renting a moving van or hiring movers, and you may find that there is a lot to be said for short term loans.

Presumably when you get your next paycheck, that would cover the first month's rent for the new apartment, so you could pay back a loan on that amount on your next payday. Furthermore, you should ideally be getting a security deposit back from your previous apartment, which will cover the security deposit (or a large fraction of it) for the new apartment. So what seems like a huge expense is actually something you'd be able to pay back in the relatively near future.

Using Short Term Loans Wisely

That example should illustrate how short terms loans can cover something for which you'd be unlikely to take out a major loan with a bank. A short term loan is typically an advance on your paycheck, and you are expected to pay it back when payday comes around. If need be, you can usually get an extension for another two weeks, or through a second payday, however. The judicious use of a short term loan can help you get through the hassle of a one-time expense without making yourself sick about it.

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