When we need some extra cash, short term loans sometimes are the best option we have. Short term loans are effective to bridge the gap between paychecks, avoid late payments on credit card bills and cover unexpected expenses such as medical bills or car repairs. Generally, there are four doors can be entered for short term loans; each of these options has its own risks and benefits.
The first option is borrowing money from close relatives and colleagues. This is common solution but we must know that sometimes, they do not have the amount we need and if we cannot return the money in time, it will be something embarrassing. Then, there are payday advances. To have this option, we have a drawback to tell our employer about our financial situation. This can be embarrassing too and sometimes, it will affect our professional image in front of our employer.
Third option we have is bank. However, most of bank products require collateral to secure the balance. This is risky decision because if we cannot maintain the stability of the monthly payments, the bank would take possession of our collateral. The fourth is payday loan. This loan product is quite safe. When applying payday loan, we do not have to provide collateral and the payment done automatically when our payday has come. Unfortunately, sometimes it offers limited amount depending on our salary.