Not everyone is lucky enough to have a savings account with enough money to cover their monthly household expenses in the event of an emergency. In fact, according to the data collected by CNBC, about 57 million Americans have no emergency savings. Unexpected expenses, like car repairs and medical bills, can leave you short on funds and struggling to manage your monthly expenses. Many people turn to online installment loans to help them in their times of need. Unlike other kinds of quick cash loans, installment loans allow you to pay over an extended term and offer three main benefits.
Flexible Payments
Many of the loans that are utilized in times of emergencies are due in full when you receive your next paycheck, without exception. This kind of repayment structure often increases the financial stress that a borrower will face. Online loans, on the other hand, allow you to set up smaller, more manageable payments. Rather than having to pay the loan balance in full, along with fees and interest, on your next pay date, installment loans give you the opportunity to pay the loan back over a more extended period.
This longer-term payment option works better for many people because their payments become more manageable and more convenient. With smaller repayment amounts, you can make your payments and still have money left over to take care of your other monthly expenses.
Receive a Higher Loan Amount
With the longer loan terms that are offered with online installment loans, lenders can provide applicants with high loan amounts. With the average emergency room visit costing 40 percent more than a month’s rent, according to The Washington Post, these higher loan limits can come in handy. These larger loan amounts combined with more flexible payment terms ends up reducing your risk of needing to take out multiple loans to adequately cover any unforeseen expenses that you may experience.
Receive the Funds Quickly
An additional benefit of online installment loans is that you can receive the money you need quickly. They work much like online cash advances, where the funds you are borrowing are generally deposited into your bank as soon as the next business day. Having this fast access to the funds allows you to cover necessary and immediate expenses quickly and easily.
When it comes to online installment loans, it is important to remember that they should only be used in the case of an emergency. Like any other form of borrowing, they have their risks. For instance, installment loans are known for their high interest, which can get you in more financial trouble if you’re not careful. To avoid the risks, make sure you can pay back the loan before signing on the dotted line.
Many direct lenders offer online installment loans giving you quick access to cash in the case of a financial emergency. Before applying for any kind of loan, do your research and make sure you read and understand the rates and terms of your loan product thoroughly to ensure you are making an educated decision.