Payday Installment Loans: They Do Exist
One of the biggest issues with payday loans is that they must be paid back with the next paycheck. The problem comes when the next paycheck is needed to cover regular expenses, and there isn't enough left to cover the loan repayment. This could cause another payday advance to be needed, and a vicious cycle begins. There is another option however. There are some lenders that provide payday loans that can be paid back in smaller installments, making it easier to manage your finances overall. How do you find these types of loans, and what should you look to be certain they will work for you?
Shop Around for Payday Installment Loans
These types of loans are not offered by every payday lender in the market. Take some time to shop around and be certain you can get a loan with repayment terms that suite your specific needs. If you need too, ask questions. It will be worth it in the long run. Ask questions about what the amount of the installments will be, how they can be paid, and if terms can be changed before repayment is complete. Another good question to ask is if there is a penalty for early payoff.
Crunch the Numbers First
It can be helpful to determine ahead of time how much of an installment your finances can handle. That way you can know at a glance whether or not a particular installment loan will work for you. These are short term loans by nature, so it is unlikely you will be able to find a lender that will stretch out repayment for more than three or four installments. If the payment will still put you in a crunch you can go ahead and form a plan for a longer term solution, such as taking on a temporary second job until the loan is paid in full or selling items to cover the payments.
Familiarize Yourself with Repayment Policies
Doing so on the front end can help avoid nasty surprises. Some things to consider are penalties for early repayment and how payments will be made. Will the lender draft installments each time or will you be required to remit payment in person? Is there an option to change the terms? Can you shorten the repayment period or lengthen it to reduce the amount of payments? These are questions to ask of the lender before the loan closes to avoid surprises later.
The most important thing when it comes to finding payday installment loans that will work well for the individual is education. Research options, ask questions, and choose the loan with the terms that best fit your needs.