Installment Loans on Payday Advances

Payday advances are typically used for unexpected expenses like vehicle repairs or general household emergencies. Due to the high interest rates that are attached to these loans, it can become difficult to pay the loan in full on it's maturity date. Enclosed is information on installment loans for payday advances and how to pay off these advances quickly, saving you time and money.

Payday Advance Loans

These loans are based on checking account history and transactions as well as your income. These loans will not use your credit history as a qualifying factor in being approved. Active duty members of the armed forces are typically not eligible for these loans.

Interest Rate

The terms and interest rate on payday loans will vary based on how often you are paid as well as how much of a loan you request. Loan increments can be from $100 - $1,000, based completely on your verifiable income. Interest rates with most payday loan companies will range from 100-200% of the balance.

Payments

Installment payments on payday loans allow the borrower to pay down the balance of the loan as well as the interest without having to make a large lump sum payment. Payments on these loans will be deducted automatically from the checking account information that you provided when making your application.

Benefits

The largest benefit on an installment agreement for a payday loan is being able to pay back the borrowed amount over a longer duration. For example, if one were to borrow $1,000 on a payday advance, installment agreements allow them to stretch out the time frame on paying that $1,000 back which decreases the impact on having to pay the entire balance off on their next payday.

Considerations

Even though paying off payday loans on an installment basis can reduce the financial impact of paying the entire balance off at one time, it can increase the amount of interest repaid to astonishing levels. Make note of the interest rate and the amount of interest that you will ultimately repay when using an installment agreement to settle a balance on a payday loan.

Warning

Payday loans can be tempting to renew due to their flexibility and easy installment repayments. However, with $500 costing over $125 for every renewal, you are paying out more than what the loan is worth by stretching the payment out and renewing the loan upon payoff. Don't get caught in the payday loan trap.