Installment loans and monthly budgeting costs
If you find yourself in a position where you need to borrow some money to cover an unplanned expense it can sometimes feel a little stressful to know how to handle the situation. Many of us are great at planning our costs month in and month out without the requirement to borrow money but sometimes a cost presents itself which we simply could not have planned for in advance. Take for example a broken freezer or an emergency vet bill due to an ill pet, these are the sorts of costs that hopefully only occur once but could require the need to borrow money. Luckily as consumers we have generally become part of an age that is able to manage credit commitments successfully. In our modern day economy there are a whole range of different ways in which credit based facilities are made readily available to us and as such we have spent years collectively building up credit reports, short term loans and credit scores designed to allow borrowing resources where affordable to do so. In fact, credit exists in almost all consumer markets whether it be typical credit where money is lent or via the purchase of goods such as sofas and other household items, as well as being available for the repayment of services such as advanced holiday bookings. This is why when it comes to coming the cost of one-off expenses, there are a range of choices which exist for us, such as installment loans.
Installment loans exist within the short term borrowing market and are quickly establishing themselves as a go to resource for consumers looking to borrow a small sum of money. Like so many consumer markets these loans are typically solely online based which means the application process takes place from start to finish via an online application form. This means these installment loans are easy to access and can be applied for 24 hours a day. Installment loans are actually an updated lending choice offered by lenders typically known to offer ‘payday loans’ and reside in the same market place. Whereas in the past the vast majority of lenders allowed consumers to borrow for up to a 35 day period, nowadays most lenders offer installment loans instead.
These installment loans can be particularly useful when we face an unplanned cost like was mentioned above, such as a broken freezer. Take for example someone looking to borrow £300.00 to cover the cost of the replacement. Installment loans lenders offer a range of repayments normally ranging from 2 months through to 6 months. This means the cost of the purchase can be spread over a pre-agreed number of months and therefore the cost budgeted for accordingly. Instead of having to repay the amount borrowed as a lump sum, as consumers we have borrowing options which allow us control over the number of repayments and therefore the amount we need to plan to repay each and every month. Once the final repayment is made the loan is repaid and the cost of the purchase therefore is satisfied.