The Benefits of Installment Loans

One of the most convenient ways to obtain cash in a hurry is with payday loans. They are short-term loans that are to be paid back by the borrower's next paycheck. But what happens when the person's next paycheck doesn't cover the loan plus the fees associated with it? In this case, the borrower could end up in more financial trouble than ever, which can create an even bigger burden. Installment loans allow people to borrow money and pay it back in smaller payments over a longer term. Here are the benefits of this option.



Frees up your next paycheck. The reason people take out payday loans is because they are short on cash. In an emergency situation, this money can be a deal breaker. While they are helpful in certain instances, those who are living paycheck-to-paycheck and struggling to make their bills may find it difficult to pay the entire loan back in 14 days. With installment loans the borrower can take up to 140 days to pay it back. Smaller payments means the borrower has more money freed up to pay their bills and for whatever else comes their way.


Gives you peace of mind. Scrambling to pay back a 14-day loan can create additional anxiety in an already tense financial situation. In life, there are no guarantees and anything can happen. So even though you think you will be able to pay the loan back with your next paycheck, it might not work out that way. What if another emergency comes up? What if your direct deposit doesn't go through in time? The consequence of missing this payment involves fees and interest rates that only add to your financial troubles, perpetuating the vicious debt cycle. The only way to prevent this from happening is by insuring yourself with smaller payments through installment loans. The longer repayment term creates a cushion that ultimately provides peace of mind.


When it comes to finding a quick source of cash, installment loans are the safest, which makes them the most popular too. In this poor economy, you can never be too careful when it comes to you and your money. Therefore, protect yourself and your wallet with a smaller payment, longer repayment term, and a trusted payday loan store with a good reputation in the industry.