Revolving debt sounds like a very expensive merry-go-round, and in some ways it is! But unlike the colorful amusement park ride, this “ride” is very hard to get off once it begins.
Revolving debt is the technical term that usually applies to credit cards and some kinds of small-dollar loans. It refers to the type of debt which is open-ended. It has a set credit or spending limit, and a complicated system of minimum payments based on the unpaid balance. The interest rates are variable, and can change from month to month, depending on your payments and balance.
The Revolving Debt Trap
Revolving debt is intentionally complicated. If you can’t figure out the specifics, it is much easier for them to sting you for as much interest and as many fees as they possibly can. This is the type of debt that encourages you to stay in debt.
This is the type of debt that is the hardest to escape!
It is also the type of debt that is easiest to find. Credit card companies make it very easy to get on the hook, and very difficult to get off that hook.
There is a better solution now, a way to avoid the credit card companies and payday lenders of the world. It is called an installment loan, and it’s just what a lot of people have been looking for.
An installment loan has fixed rates. It has a set repayment schedule that never changes. An installment loan gives you all the information before you agree to the loan, so you know exactly when every payment is due, and how much every payment will be.
It doesn’t change interest while you aren’t looking. It doesn’t increase the fees, even if you miss a payment!
And the best part of all, is that it is just as easy to get an installment loan as it is a credit card.
The Answer to Revolving Debt
The big banks make borrowing money an almost impossible task. The only way to be sure to get a bank loan is by not needing a bank loan. Which is pretty confusing!
Installment loans provide the safety and security of that bank loan. At the same time, they are as easy to find and apply as the typical credit card or payday loan. It really is the best of the both worlds. As we like to call it, it’s the Installment Advantage.
Now there is no reason to get snared in the revolving debt trap. Why would you agree to changing rates and hidden fees when you can have clear-cut terms and a payment schedule that is convenient and easy to remember?