Don’t Get Caught in a Payday Loan Trap
Are you running on a payday-loan treadmill?
A quick loan can relieve short-term financial crises, but here’s the next crisis: the loan has to be paid on your next payday, which can leave you strapped for cash again. Then you get another short term loan to pay off that loan, and so forth until you are mired in a payday loan mess.
If you’re having trouble making ends meet, perhaps an installment payday loan would work better for you. Installment loans allow you to make several smaller installments and spread them out over a longer period of time, rather than having to pay the loan off in one payment.
One loan is better than ten!
Loans of any kind can be stressful. Using a major portion of your pay check on your next payday to pay off a loan can lead you to request an extension of the loan – which costs more money — and request another loan – which also costs more money — and so on, until you have several unpaid loans, and insufficient funds to pay them.
Payday loans have a legitimate purpose when you’re living from paycheck to paycheck. But if you want to avoid this trap, think about your goals before you request a loan. Analyze your budget to see if you can actually afford to take out a loan. Ask yourself whether you really think you can get by on your next paycheck after paying back the full amount of the loan. If the answer isn’t a resounding “yes,” then consider requesting an installment payday loan.
Installment loans are available in amounts of up to $1000. In many situations, installment loans are easier to pay back than single-payment loans. You still have the convenience of the payments being automatically deducted from your bank account, but the payments are smaller and easier to handle.
How do I get an installment loan?
Requesting an installment loan has never been easier. Online applications are now so streamlined that you know within minutes whether your loan request is approved. All you do is fill out a short application, which only takes a couple of minutes. If loan request is approved, the funds will be deposited directly to your bank account.
Am I eligible for an installment loan?
Installment loans have certain eligibility requirements, which differ from lender to lender. Sometimes a lender will require that you have successfully obtained and repaid a certain number of single-payment payday loans before you can be approved for an installment loan. Other general requirements include that you must be 18 years of age, have a regular income, and have a bank account.
But borrower: Beware!
Repayment of the loan is an important consideration. Before you accept any kind of payday loan, make sure you read everything and understand the terms and conditions of the loan. Different lenders have different loan agreements. Remember that it is your responsibility to read the fine print. If you find yourself unable to make a payment, contact your lender before the payment is due. You may be able to reschedule the payment date and avoid a default on the loan.