Okay, so this may seem weird. What do I mean don’t get stuck in the short term debt cycle? Short term debt is what many people think of as payday loans or high interest rate loans. Sometimes the loan is a payday advance. Sometimes it is a title loan on property. But, these are loans that are paid off in 30 days or less, generally. At least, that is the theory.
However, according to some studies, 91% of users of “payday loans” and other high risk loans are people who are borrowing five or more times. Only 1% of users are people who take out one loan for an emergency. You can quickly get stuck in a cycle of borrowing to pay off your existing loans.
Short term loans are designed to help you in an emergency. If you need to borrow money for a longer period of time, talk to your bank or local credit union.