Short-term debt is credit that’s paid off as you go and in under 12 months.
Long-term debts are usually given as a lump sum and paid off through set payments over multiple years.
For example, a mortgage is a long-term debt because it can take up to 40 years to repay. Below are some examples of short- and long-term debt:
Mobile phone contracts
Bank default agreements
Mail order accounts
Car finance/Hire purchase agreements