People who need money fast for emergencies may not have many options. If the credit cards are maxed out, a cash advance is not possible. Friends or family members may not be in a position to help. Traditional lenders may not approve a loan application. There may not be anything of value to pawn.
Payday loans are easy and fast to get, but they are the most expensive options available. The interest rates are exorbitant, fees are high for late payments, and the entire amount have to be paid off at one time. Customers often find themselves in a vicious cycle of debt once a payday loan is granted.
Non-traditional lenders, such as Blue Trust Loans, offer installment loans as an alternative to payday loans. The application is short and can be completed online or over the telephone. Requirements are minimal and approval can take minutes. The money can be available as soon as the next business day and will be directly deposited into your bank account.
Installment loans are easier to pay back because customers have up to six months to pay off the total amount. A repayment schedule is structured around how customers get paid. Set amounts will be automatically withdrawn directly after pay day. Those who are paid weekly will have up to twenty-four payments, while those who are paid monthly will have six payments.
There are a few similarities between payday and installment loans. The lender is taking a high risk, so interest rates will be much higher than those of a traditional lender. They are slightly less than payday loans, but customers need to be mindful of the total costs before signing an agreement.
Penalties for partial, late, or non-payment are also high. It is essential to be sure payments can be made in full and one time when seeking fast cash. Failure to comply with the agreement not only adds to the total cost of the loan, it will also affect any future attempts to borrow money in the future.
Opening a savings account can avoid the situation and the expense altogether. Saving money can be difficult so start off by putting aside five dollars each pay day. The goal is to leave it in the bank until a real emergency happens.