Emergency situations are unpredictable and inevitable. It will be difficult, especially if you don’t have an emergency fund to turn up to whenever the need for fast cash arises. Although payday loans are beneficial in these kinds of scenarios, it could become a burden and could make you fall into a trap of debt cycle repayments if not used responsibly. There are several financial institutions, which offer alternative loan sources than that of a payday loan.
An installment loan is a type of loan where there is a set number of scheduled payments repaid by the borrower over a specified period. Opting for an installment loan than getting a payday loan would be more advantageous for you in many ways. Payday loans have bigger interest rates and shorter duration. Typically, you will have to repay a single lump sum payment on the next payday. On the other hand, an installment loan can last for a number months that extends for up to 2 or 3 years for a short-term installment loan. This way, you will have more control of how will you budget your finances, plan payments in advance and won’t fall into the trap of an endless debt cycle payday after payday.
An advance loan, also known as short-term cash loan is another option of getting that much-needed cash fast. Most companies that offer an advance loan doesn’t require complicated papers and collateral as well as a long waiting time for a loan approval. Like for example, Maxlend only requires borrowers to be employed and have a social security number to be eligible for an advance loan. They also offer quick cash release where you can get the borrowed amount in as fast as the next business day. Unlike having a payday loan, where money owed should be paid in lump sum on the next payday, an advance loan offers straightforward loan repayment terms where you can have the loan settled in equal installments. Maxlend also has a streamlined application process where a brief and concise process takes place, enabling you to finish the loan application in minutes.
Personal loans offer quick and ready cash without too many requirements, but compared to that of an installment loan or an advance loan, a personal loan entails a heavier burden with a much higher interest rate. Unlike a payday loan which requires a prompt, lump sum payment, a personal loan can be repaid over a longer period, depending on your preference, but with a maximum term of 5 years.
Presented with these various loan sources, you can assess loan types that suit your financial needs and repayment capabilities. Just make sure to always review loan agreements, keep track of repayment schedules and borrow only what you need. This is for you to avoid heavy interest payments over time.