When emergency expenses arise, not everyone has cash on hand to pay them. People without ample savings or living paycheck-to-paycheck might not know where to turn. Small loan amounts often aren’t available from traditional banks, which is why online installment loans are often the better option.
Are Installment Loans Expensive?
Installment loans offered by short term lenders have higher interest rates than a traditional loan from a bank or accessing a credit card’s line of credit. What borrowers should know is that short-term installment loan costs are manageable when people don’t take out more than they need. The costs of short-installment loan products rise significantly when borrowers take out more than they can pay back within the timeframe allotted or even sooner.
How to Find a Low-Cost Installment Loan
Borrows should start by finding a company that offers smaller loans for less expensive emergencies like a minor car repair, utility bill payments, or even covering the cost of medicine until one gets paid. While installment loans are available in larger amounts up to $5000, in some cases, the best way to keep the overall cost of the loan in check is to not over-borrow and to pay off as soon as possible.
Getting behind on an installment loan from a short-term lender raises the cost of the loan significantly. Staying on top of the payment schedule and making payments on time helps borrowers pay off their loans faster and stay out of debt.
