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People take out short term loans for a wide variety of reasons. Often, an emergency situation, such as an unexpected bill or expense, leaves people with more money going out than coming in. If there are no savings or other funds available, they may be unable to make rent or mortgage payments or afford food, heating, travel or other essentials. In these cases, borrowers will often choose to apply for enough money to get them by until their next payday and then repay the money plus interest owed when they get paid.Short term loans can also be beneficial if you don’t have money to pay for a big expense, such as a car, a holiday, a wedding or a home improvement project, all in one go. With a short term loan, you can access the funds to buy what you want upfront and then make monthly repayments for up to one year to cover your debt.