Of all the types of loans to get into, installment payday loans are one of the highest interest rates. The installment part of that phrase simply means that instead of paying a loan off in one payment, there are installments that are paid off on a monthly, weekly, or yearly basis. The most common among these is either the monthly with a portion of the paycheck due to the payday loan company or the bi-weekly depending on how often the employee and borrower get paid.
This is a much different type of debt, possibly on the opposite end of what would be considered risk, for instances as compared to student loan debt. Risk isn’t even the best word to describe it. The risk comes in the default, but the more appropriate word to describe these payday loans is expensive. The companies both with their slogans, mottos and inherent nature are predatory and tend to rely on individuals don’t feel like they have any other options and in some cases may not have other options or have somehow weighed a payday loan to be their very best option.
This can be a scary place to be mentally and emotionally. Nevertheless, if you are employed, there are certain options that may truly be unique and require you to have a specific amount of money right now. I can tell you, however, that the statistical likelihood of this one opportunity being what it was you thought it was is pretty small. My advice is that if you are looking for a payday loan to do something like an MLM or network marketing, you’re making a mistake. If you’re using a payday loan to buy anything that may be considered “luxury”, you’re making a mistake. If you’re using a payday loan because you’re behind in your rent, it may be time to rethink your choice of residence.
These loans are very expensive. There is a level of discipline that may be missing for individuals considering this type of loan, so if you find yourself in that situation, do a little bit of deep thinking before pulling the trigger.