People generally do not like to have money hanging over their heads. Taking care of a problem in the short term can potentially lead to longer-term problems. This is a major reason why people enjoy taking out a short term loan.
Because the loan is going to be paid off in a shorter amount of time, the monthly payments are going to be higher. This can be intimidating to people, but it will help them get out of their debt in a much quicker amount of time.
One big advantage of a short term loan is that your interest will be less because your repayment period will be quicker. Even though the interest rate may be higher than with a long-term loan, you are actually saving money in the end.
A short term loan also provides you with the comfort of knowing your financial situation and how much money you will need to set aside for monthly payments. If you take out a long-term loan, you could be in a completely different financial situation two to three years down the road. A short term loan provides you with the peace of mind to know your situation within a year or so.
Another advantage is a quick boost to your credit score. Also, if the short term loan is not for a mortgage, you will not have to put up any collateral. And, if that is the case, you will be able to receive your money in a much quicker fashion. Short term loans allow your stress to melt away and feel better about your financial situation.
As with any loan, make sure that you are choosing the right loan that fits your needs. You don't want to be caught in a situation where you cannot fulfill your monthly obligations. This will hurt your credit score and could lead to bigger financial problems.