5 Ways Installment Loans Can Help You Solve Your Financial Problems

20-09-2018 | Dojo |

5 Ways Installment Loans Can Help You Solve Your Financial Problems

Do  you need to cover for a financial emergency? Do you have a medical bill that needs to be paid or household repairs that just can’t wait? A loan can get you out of a financial distress by giving you cash upfront, then you’ll pay the balance over time.

If used properly, a loan can really help you financially.

Here are 5 ways an installment loan can help

An installment loan is a loan that is repaid over time with a set number of scheduled payments; normally at least two payments are made towards the loan. The term of loan may be as little as a few months and as long as 30 years. A mortgage, for example, is a type of installment loan. (More on Wikipedia)

Pay Off Debt

Most Americans struggle with chronic debt, about 80% of the families are in some kind of debt.

Debt can ruin a lot of opportunities for you, not to mention they are costly on a monthly basis and it’s impossible to reach financial independence when still paying off debt.

Your credit score is also affected and this has a clear impact on future loans, insurance and even job opportunities.

You can find personal installment loans online that can give you the boost you need to pay down debt. Once you receive the funds, apply them to the most delinquent accounts or accounts causing you the most financial strain at the moment.

Once the most costly debt is cleared, you can pay your lender back in monthly installments and move forward towards clearing off all your debts.

Start your emergency fund

If you don’t have savings, then it’s really easy to fall back deep in debt as soon as you hit an emergency.

This is why most economists advise you to start an emergency fund right away and have it ready for any unexpected expense that needs immediate attention.

You can use an installment loan to borrow $200-$2000 and deposit the funds directly into a savings account. You’ll make monthly payments to cover that loan, while keeping your emergency fund save and secure, not touching it unless really needed.

Get a business loan

Starting a business with no capital can be done, but it’s harder than being able to invest money in it from day one.

Whether you want to become a freelance writer, photographer, or web developer, you’ve probably realized that it will take some money.

From certifications, to business insurance, setting up a home office, paying for expensive software and supplies, all these need money to be taken care of.

As long as you have a good business plan in place and are able to make up for these costs quickly from your business revenue, then it makes sense to get a personal loan instead and use it to power your newly set biz.

Get out of a financial problem

Medical bills that are not covered by your insurance. A huge leak in your house roof. Car breaking down, any big financial emergencies you never accounted for.

If your emergency fund is not yet into place, you can use an installment loan to cover for these expenses.

An installment loan is convenient in that it can be applied for 24/7 and funds are generally deposited within a few days. You can get yourself out of a jam without having to “rob Peter to pay Paul”.

Save money by paying upfront

You can pay for your car insurance upfront and get a big discount by doing so. Paying off your high interest credit cards will save you thousands of dollars on the long run, since these are one of the most expensive type of debt you can get into.

Paying off a credit card or miscellaneous debts saves you on late fees, collection costs, court fees, and whatever else is tacked on as a result of your balance being overdue.

Loans can be a lot more useful than what people give them credit for – if they are used responsibly. Whether you need to get out of a jam, start saving towards your future, improve your credit, or find more ways to save money, having a lump sum of cash upfront can make all the difference in the world.

As long as you can afford the monthly payments, consider using installment loans to set your personal finances up for a great future.

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