Lower Interest Rates Attracts Consumers
Houston, TX -- (SBWIRE) -- 03/25/2013 -- Warnings have been issued by the Consumer Federation of America to those consumers who use Internet payday loan sites where the money borrowed is due by the borrower's next payday. These loans, according to the CFA, can cost up to $30 per $100 borrowed, with borrowers facing annual interest rates (APRs) of 650%. In lieu of these type of loans, Jane Barr of Installment Loans Source says installment loans are a much better option for the cash-strapped individual facing credit issues.
Says Barr, "Payday loans are small, short-term loans that need to be repaid on the borrower’s next pay date. Installment loans, on the other hand, are able to be repaid over the course of several months, in smaller monthly payments. So instead of paying one large lump sum back, you pay the loan off in pieces. You will be paying back a set amount each month which allows you to fit the expense into your monthly budget to avoid defaulting."
Installment loans, according to Barr, have a much lower interest rate than payday loans, making them a less expensive alternative for those already facing hard economic conditions. "One reason many people choose payday loans in the first place is they offer small loans to people who don't have credit cards to turn to for emergency situations. Most banks don't hand out small loans, under $1,000, but we do, at much lower rates than the payday loan companies. Installment loans are available for small or larger amounts. That is a great advantage that helps set installment loans apart. You can take an amount like $1,000 and repay it over the course of 6 or 7 months to make it more affordable for you."
While banks and private lenders often question consumers about the reasons for the loan, often restricting loans for certain purposes only, installment loan companies do not do this. Says Barr, "Unlike some other types of loans, installment loans do not restrict what you can use them for. The loan is for you so you should be able to use it for whatever you please. Some common uses for installment loans are: car repairs, home repairs, bills, medical expenses, purchasing a vehicle, college tuition or school expenses. These are just some of the options you have for using your installment loan. The possibilities are endless."
About Installment Loans Source
Installment Loans Source is a one shop stop for those looking for a place to apply for an installment loan. Whether you have good or bad credit, the one application website will submit the consumer's information to multiple lenders, rendering an answer in as soon as one day. Media Contact