A recent study found that 63% of people in the United States would not be able to cover an emergency of $500 to $1,000 because they do not have enough money in their savings account. Often times, this means they need to seriously cut back on spending to handle the emergency, put it on a credit card, or borrow it from friends or family members. Some companies, however, are making it easier for people to borrow a small amount of money when they need it.
What are Installment Loans?
Installment loans are loans for a small amount of money, usually under $2,000. These loans are similar to payday loans in that they’re easily accessible, but they differ from payday loans because installment loans can be repaid over a six month period. Payments can be weekly, biweekly, or monthly, depending on when a person is paid.
Why are Installment Loans a Good Idea?
Installment loans give the person the chance to get the money they need to handle any small emergency without having to get a personal loan, fill up a credit card, or borrow money from someone they know. They’re easy to obtain so most people will be able to get an installment loan even if they don’t have great credit. They will need to meet minimal requirements, like being over the age of 18 and having a steady source of income.
When Can a Person Borrow Money With an Installment Loan?
A person can use an installment loan for just about any reason. However, it’s a better idea to use this for a true emergency. If a person already has an installment loan that is not repaid in full yet, they likely cannot get another one. So, it’s not a good idea to use it to make a big purchase. Instead, it should be saved for when the car breaks down or the roof starts to leak.
If you’re one of the 63% of people who don’t have much money in their savings account, start saving today. However, if you do have an emergency and you need help finding the money to cover it, companies like Maxlend Loans can help. Visit their website now to learn more about installment loans and other loan options in case you need them.