Personal installment loans are a good way to get through tough financial times without having to continue taking out loans. Many people who have a broken down car or medical emergency that they need to pay for but can’t until payday take out a payday loan online. This is different from an installment loan, and the second option might be better for people in some situations.
A payday loan, you may already know, is basically a loan til payday. You sign paperwork with your bank account information, normally, that says you will pay back the loan in full plus interest within a two week period, which allows for most people’s paychecks to be processed. If you don’t pay off your loan within that time period, you may have to deal with some serious fees.
The interest rate for payday loans is very high, but it’s set. As long as you pay the loan back on time, you will know just how much interest you’re going to pay. Many cash advance lenders will automatically draft a check from your account the day your automatic deposit from work comes in, which can help you steer clear of added fees and such.
Sometimes, though, you may not be able to pay back a loan in full on your next payday. It might take you two or three pay days to get enough money together to pay the full loan back.
Many in this situation get trapped in a repetitive cycle of taking out online payday advances. They will take out a new loan to cover the old one until they’re in an impossible situation because the interest keeps piling up without actually being paid.
Personal installment loans can solve this situation. They are basically payday loans for a short amount of time and a small amount of cash that you pay back in installments. Depending on the loan, you could have four, six, or even eight weeks to pay back the loan.
The interest rate is likely to be a little lower on this type of loan, but you’ll probably end up paying a bit more interest over time. You’re keeping the lender’s money for longer, so interest will keep piling up. By the time you pay back the loan, though, you won’t have had to get into a repeating cycle of taking out more loans, so personal installment loan can be very helpful.