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Which is better a long term or a short term loan?

On the other hand, a shorter term is the best length if you are looking for a low-cost loan and manageable monthly payments. For example, if you borrow $3,000 at a rate of 10% repayable within twelve months, your repayments will be higher, but the interest charges will be lower compared to a long-term loan.

What's the difference between a short-term and long-term personal loan?

With a short-term personal loan, monthly payments tend to be higher; with a long-term personal loan monthly payments are likely to be smaller, which allows for more budget flexibility. On the flip-side, this can mean you're paying more in interest over the life of the loan.

Is a short-term loan a good idea?

For example, if you borrow $3,000 at a rate of 10% repayable within twelve months, your repayments will be higher, but the interest charges will be lower compared to a long-term loan. Therefore, a short-term loan is ideal if you want to pay off the loan faster and make significant savings on interest charges.

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