Bad credit can make tough times tougher. Especially when an emergency arises and emergencies can happen to anyone. Whether it is a job loss, a medical emergency, or a car repair, at one time or another everyone needs a personal loan at sometime.

So what happens when good people with bad credit have an emergency need for money? Maybe a parent is ill, maybe the car needs repair, or maybe they need to see a doctor and don't have any insurance or money. Whatever the need, whatever the emergency, good people with bad credit have limited options.

What they need is a personal or unsecured loan. One option that many people turn to is "payday loans." Payday loans are often a double-edged sword. These loans are short term, small amount, high-interest loans. Usually, they are limited to amounts under $500. The borrower writes a post-dated check for the next pay date in the amount of the principal and interest. The interest rate is extraordinary ranging from annual percentage rate of 300% to 1500%.

The major drawback with payday loans, however, is their incredibly short term. Borrowers, who are already stretched thin, have difficulty repaying the loan in a two-week period. This leads to rolling over the loan, which in turn leads to more fees. Too often it becomes a vicious cycle. Fortunately, as word of these predatory lending practices has filtered into the media, other institutions have stepped up to offer short-term personal loans.

Credit unions were the first to step up, offering short-term loans to their members at far lower interest rates and extending them over longer periods of time. The typical short-term personal loan is written for 90 days, which gives the borrower adequate time to repay the loan. Payments are low enough that the borrower's budget isn't completely crushed. Other institutions, such as banks and savings and loans, are also starting to step up.

Emergencies are stressful. They can be even more stressful if the individual has bad credit. The most important thing for individuals with bad credit to remember is that often there is more than one choice for a quick personal loan.