If you’re like the majority of Americans, then you likely live paycheck to paycheck. If so, then it’s also likely that you dread being faced with an unexpected expense. When you’re hit with a large, sudden bill, it can blow a hole in your finances, leaving you scrambling to find a way to cover your bill and to support yourself until your next paycheck comes in. It’s for this reason that many people consider applying for a payday loan.
While payday loans can be useful in the short-term, they frequently trap you in a vicious cycle of debt, putting you in a worse financial situation than you might imagine. Fortunately, if you want to avoid payday loan debt, you have the option of using an installment loan. Learn how installment loans can help you avoid payday loan debt and find out how to get an installment loan from a trusted lending source.
The Payday Loan Debt Trap
Almost everyone who has needed a loan to cover a large bill has considered applying for a payday loan. However, there are a variety of reasons that you should be wary of using this loan source. The primary risk of using a payday loan is falling into something known as the payday loan trap.
The idea behind a payday loan is that you get a cash advance on your paycheck that must be paid when you receive your next paycheck. Unfortunately, what often ends up happening is that you run out money again, are unable to pay the loan, and then have to extend the loan. For many people, this process repeats itself multiple times, meaning they may eventually have paid as much as four times the amount of the original loan due to high interests rates.
Payday loans almost always leave people struggling with debt, which is what payday lenders are counting on.
Using Installment Loans
If you absolutely need a loan but don’t want to run the risk of falling into the payday loan debt trap, the best solution is to apply for an installment loan instead. While they may seem similar, installment loans differ greatly from payday loans and are generally much easier to pay off.
With a payday loan, you will have a very short period of time to repay your loan, usually two weeks or less. An installment loan gives you a longer period of time to repay your loan and usually gives you a flexible payment schedule. In addition, your installment loan payments go toward both the interest and the principle, helping you to stay out of debt. Anyone who needs a quick loan should choose an installment loan instead of a payday loan.
Apply for an Installment Loan
Clearly, the best way to avoid payday loan debt when you need to pay an unexpected bill is to apply for an installment loan. However, this means that you need to find the right lender. When you need an installment loan with flexible terms, your best resource is Koster’s Cash Loans.
Koster’s Cash Loans is proud to help our clients get the quick installment loans that they need. Unlike other lenders, Koster’s Cash Loans does not require a bank account and we can help you choose a loan with the payment schedule that fits your lifestyle. Apply for an installment loan from Koster’s Cash Loans today.