No Pressure and borrowing money don’t usually go together, but all of that is about to change as high-pressure payday loans are being replaced by stress-free “locked down” installment loans.
The biggest difference between payday loans and online installment loans is the pressure, and the pressure can make all the difference in the world.
Payday loans are due almost as quickly as you get the funds. The entire principle balance of the loan, plus the fees and interest, are all due the next time you get paid. If it’s a couple weeks or a couple days, it’s due all the same.
This causes a lot of pressure and financial stress on the borrower. If the loan isn’t completely paid off, then it “rolls over” into a new pay period. That means extra fees, more interest, and even more pressure. How could this NOT stress you out?
How are Installment Loans Different?
There is no pressure, and there is no stress. Instead of making you pay the entire loan back immediately, these loans are structured to give you all the time you need to repay them. Weeks? Months? An entire year? That’s between you and your lender. But a good lender will work with you, and give you ample time to repay the money.
When you find a good lender who offers you a good rate, you can agree to the repayment schedule, and then your rates are locked-down. The interest won’t rise and fall from month to month based on your credit or the market. Your are assured the same rate for the life of the loan.
You can pay the loan off early with no early payment penalty! But you don’t have to do that, you have a set schedule that works with your finances.