Loan terms can sometimes be difficult to find around. For is there really a difference between quick loans, mini loans, micro loans and consumer loans? And what determines whether a loan is short-term or long-term? Here we will give you a guide on how short a short term payday loan is.
Short-term versus long-term loan
There is not a 100% clear definition of when a loan will change from short-term to long-term. However, a good guideline is that a loan is short-term if the maturity is less than one year, while with a maturity over one year it can be defined as long-term.
Where it becomes difficult is when you need to identify whether your loan needs are short-term or long-term. How to measure it? And what really happens if you take out the wrong type of loan in relation to your needs?
As a starting point, your borrowing needs are short-term if you have an extra expense to get out of the world here and now and you want to repay within a short period of time. It may be an unforeseen expense, an attractive offer, or something quite third. Put another way, it is a lump sum situation. Here, a short-term loan is a good loan option, as these are typically smaller amounts, which is why it does not take you long to obtain the money.
Do you often balance on the edge of your account because you have a very hard time saying no to things you really don’t need? Then there may be a general over-consumption, which is why your loan requirement is suddenly long-term. In such a case, it would not be appropriate to take out short-term loans to cover your expenses, as you are likely to have difficulty repaying the loan shortly.
Benefits of short term payday loans
A short-term loan can be particularly advantageous if the premise matches your real loan needs. This means that you get a little extra air in your everyday life when an urgent expense of whatever type occurs. Thus, short-term loans give you freedom and flexibility in relation to your finances and planning for them.
In other words, there is no longer any need to panic or compromise when things are not going exactly as you intended. If you have not taken out a short-term loan with us before, you also have the opportunity to receive a 50% discount for up to 30 days.
So how short is a short term payday loan? Short-term loans with us have a maturity of 1-30 days. A good rule of thumb is therefore that you need to evaluate whether you can finance the extra expense in a relatively short time. If the answer is no, we recommend that you look for other alternatives. Otherwise, short-term loans, in turn, may be a good solution for you who are just missing the last thing in a single month.
Credit amount 6000, – Maturity 12 months Total credit costs. 7908, – Mdl. maximum payment 1716, – Total repayment 13908, – ÅOP 816.67% Debt rate / annual fixed: 243.3%. 14 days cancellation right on the credit agreement. Age 20+.