Short term loans can be a lifesaver when you are in a financial pinch. If you qualify for a short term personal loan, you are likely to have an interest rate that is much lower than those for credit cards. You are better off applying to a traditional bank or credit union, because their rates are usually much lower than payday lenders. The loan will usually have a term of two years—although payday lenders offer much shorter terms for correspondingly much higher interest. At the end of the term, you've paid back the principal plus interest, and you're done. None of this carrying debt forever by paying low minimum monthly payments that barely make a dent in the principal amount owed like with credit cards. Another perk of these loans is that they can usually be approved in as little as one day, three at the most. Plus, personal loans are pretty much no-strings attached at least as far as what you spend the money on. Spend it how you will, but make sure you pay it back according to the agreed upon terms.