spacetruck.net

Short term loans often get a bad rap for being several thousand APR. The anti-loan crowd often uses this high statistic as an opportunity to bash the loans, saying the loans “prey” on the poor for the sake of the greedy. Like most arguments used by lobbiests, this is far-fetched.

Short-term loans shouldn’t be analyzed on the basis of the APR because they aren’t year-long loans. They’re short term loans — not long term loans.

That’s like saying hotels are too expensive because they cost $30,000+ per year. That’s just silly — if hotels were priced any cheaper, they couldn’t continue their quality. It’s just not that simple.

Short term loans can be a great deal, depending on your situation. But it always depends — there are rarely sure-fire rules when discussing personal finance or financial planning.