A short-term loan is a loan which borrowers can obtain quickly with reasonable ease that is paid back within a relatively short period of time (normally between seven days to a month).
Short-term loans, of which payday loans are the most obvious example, can be helpful during emergency situations which require a quick cash injection.
However they are built for the short term and it is crucial that they should never be considered as long-term financial solutions. Think of it like a taxi ride – it’s perfectly acceptable to take a taxi to pop across town in a hurry but you wouldn’t consider taking one to get across the country.
Payday loans are designed to be solutions to emergencies and should only be considered if the situation is an actual emergency.