Which type of loan is typically a short-term loan, often due on the next payday?

The correct choice, which describes a loan that is typically short-term and often due on the next payday, is a payday loan. Payday loans are designed to provide immediate cash to borrowers who may be experiencing a financial shortfall before their next paycheck arrives. These loans usually have high-interest rates and are meant to be paid back in a lump sum on the borrower’s next payday, hence the name "payday loan."

This type of loan is usually for small amounts, and while it can provide quick access to cash, it often comes with significant risks, including the potential for borrowers to fall into a cycle of debt if they cannot repay the loan on time. Understanding payday loans is crucial for making informed financial decisions, as they can impact a person's financial health if not used wisely.

Other options, such as installment credit and revolving credit, refer to different types of borrowing arrangements. Installment credit involves loans paid back in fixed monthly payments over a specified duration, while revolving credit allows borrowers to access funds up to a certain limit and repay at their discretion. The term "white-collar career" does not pertain to a type of loan and instead describes a category of occupations typically characterized by office work and managerial roles.