Replacing Payday Loan with Installment Loan
Payday loan is self explanatory that you pay back a short term loan at the end of the month on receiving your end of the month pay check. Payday loan is an instant financial crisis saving injection with steep interest rates to pull you through the month on an extremely tight budget.
In comparison an installment loan is spread over months and even years with fixed regular monthly payments that include the principal and interest.
Perception of Installment Loans
The consumer should remember that installment loans seem to appear attractive because the general perception about installment loans is that they are
- Without a final balloon payment
- Affordable interest rates
- Serviced locally
Regardless of the impressions created by lending institutions on the long term benefits of installment loans, it is still imperative on the borrower to read the fine prints of terms and conditions that are tagged with the loan. The law of the land states, “borrower be aware,” and some lending institutions provide installment loans at comparatively higher interest rates and sugar-coated add-on fees under dubious guises.
Salient Features of Installment Loans
Overall, the installment loans do offer relief from the financial pinch and a lucrative choice to payday loans. Installment loans are offered by different lending outlets to suit your needs, requirements and your income so that you make your monthly payments without stretching yourself financially thin.
Furthermore, the installment loans are a blessing for people with no credit life, bad credit or poor credit because this loan shall help build a report of regular payment through multiple repayments over a period of time.