Most people at some stage of their life's need a short term loan. Whether its because you own one house too many or you have a short-term problem with making the car payment - often you need a loan and you need it now!

So what is a short term loan? Basically just a loan that you may take for as little as a few days or for as long as a few months. Payday loans are classic short term nonsecured loans. These are a loan against your next pay check - and are often used to repay other urgent debt - which if you default on will result in a black mark against your credit record. Run out of credit to pay for the repairs to get the car back on the road? And you need the car for work - that's a good reason to search out short term.

The other extreme is a short term bridge loan which is often used by those moving homes who end up buying their new home before they sell their existing home. Also called a second mortgage this is a secured loan at higher rate of interest than a regular mortgage. A bridging loan means that the homeowners have the security of knowing that they have the house of their dreams - but unfortunately they also have two sets of repayments to make.

Alternatives to Short Term Loans

There are alternatives to short term loans - which mean that they are probably not as common as they once were. Credit cards are used by many people to give themselves a quick cash injection. The problem is the cost that this comes at quite a cost if you add up the interest you will pay- and remember that's on all your purchases not just the cash advance. Credit cards may be a tempting solution for a quick short term loan but they certainly aren't a perfect one.

If you do own a home a better option may be a revolving credit faclity. This is merely a check account associated with your mortgage - allowing you to borrow up to your credit limit. This can be your cheapest secured loans. The trick here is to makes sure that you are not just using this facility to live beyond your income. Borrowing against your home to finance a vacation or a luxury lifestyle is not at all smart. Used wisely though it can give you flexibility in spending which allows you to take advantage of cash just a click away from your online mortgage facility.

Its critical though, before you start applying for a loans to carry you over from one paycheck to the next, that you really consider your financial position and decide whether it really is a good idea to be borrowing your way out of your personal financial meltdown. Instead look at the big picture - re-do your budget, or do one if you don't have one, be realistic and work out how to live within your means.

Applying for Short Term Loans

What if your credit cards are maxed out and you don't have a revolving credit facility or line of credit? But you still need cash now - well you would do worse to check out the options of getting a short term loans online. Online is a good place to start but you will find that you won't get far with your online application unless you can come up with these basic requirements:

• proof of identity and your address
• proof of your income
• proof of employment

Once you have this basic information together don't just accept the first online offer you are made. Apply to several brokers and secured loan companies compare their best offers. Sure you need the money - but they probably want your business more - particularly if you earn more than $1000/month and have a secure permanent job. You need to look at the offers and check the fine print - what is this loan really going to cost you? Can you pay it back early and save cash? Or what happens if you need to extend the term of your loan - is that possible - will it cost you more money?