Payday loans and installment loans have their problems. Even the lenders would be the first to admit that a loan, as excellent as it is, is still a loan. It needs to be paid back. Generally speaking, it is almost always less preferable than having the cash available and just paying for it in full.
Regardless, there are scenarios where payday loans and installment loans can really benefit a person struggling in a transition. Below are a few scenarios that will allow readers to take a less gut-punch reaction to payday loans and installments, and explore situations where they can be useful, even valuable.
An extra boost of income to account for a new monthly expense
A medical bill or a car bill may sneak up on anyone. Families can potentially commit to that by adding making sure it is paid. But, that money has to come from somewhere. An installment loan could theoretically account for the areas where the money is being “left” and funneled to a new payment. The loan could act as a “back up.” If a family has a new bill of $400 a month for a medical expense to be paid in a year, an installment loan could cover groceries or other expenses during this repayment.
Meeting a tighter budget for half a year
Expecting a tighter budget for the next half a year or so? An installment loan could help make up the difference and account for some buffer room. Families can have it available, if needed, and help boost that tighter budget for the time being.
Transitioning out of no job or a low paying job into something new and better
Of course, there are scenarios where a better job is around the corner or a family is undergoing relocation. This could be a favorable scenario for obtaining an installment loan. It can help in the transition while the family gets organized in their finances.
The reality is that installment loans do not fit every single person’s needs. They are effective in certain situations. Visit BlueTrustLoans.com for more on transparency in lending and situations that may be suitable if approached responsibly.