Short terms loans can be anything from a few days to a few years, and are generally anything from a few hundred dollar to a few thousand dollars. Finding the right type of loan for your own circumstances is what is most important.

So who offers them and what is best for me?

Personal loans are often for amounts over $5000 and are repaid over 24 to 36 months. These will often require asset security and significantly more paper work. This type of loan might be beneficial for debt consolidation, a car, furniture or a holiday.

Bank overdrafts and credit cards can be used for smaller amounts and have higher interest rates, establishment fees, monthly charges and other various administration fees. Generally they require a good credit rating and have minimal monthly repayments not encouraging full payment of the loan quickly. Credit limits can be increased by the lenders making getting out of debt more difficult.

A Cash Relief cash advance is exactly that. A quick easy cash injection between pay checks, often for only a few hundred dollars. It is fully repaid within a few weeks so you can move on with your life. The charges can be higher but selecting a cash advance is like taking a taxi for a short trip across town. Yes it costs more than the bus or driving your own car but it’s fast, convenience and only used for a short trip. Because the amounts are only a few hundred dollars there is no need for security and often those whose credit history is less than perfect are not excluded. In some circumstances making sure you get your prompt payment discounts on bills will save you money or improve your credit rating. Banks are also very quick to charge dishonour fees often only on small amounts, which can really add up quickly.

Another way to look at it is like staying in a hotel, it might cost you $200 per night, for a night or two that is OK, but you wouldn’t choose to stay there full time or it would cost you $73,000 per year. Clearly not the right option, so for a few days it’s OK, but not the right option for a long term stay.

So when considering your need for a loan it is important to choose the right type of loan for your circumstances.