Payday installment loans also known as “cash advance loans”, “check advance loans”, or “deferred deposit check loans” are becoming an increasingly popular form of loan for people with bad credit. With these short term loans people looking for some extra cash will fill out the usually short application in a matter of minutes and have the desired amount they need direct deposited into their checking account which is usually up to $1500.
While these types of loans are a fast remedy for those seeking some quick revenue to help cover unexpected expenses they can become a nasty pitfall for most consumers.
These payday installment loans are riddled with high interest rates which can actually cause people to fall further into debt. To make matter worse the way that these particular loans work is that after you take our your initial loan you have the option of rolling over the loan amount if you can not pay back the initial amount right away. While this may sounds like a nice option each time that you do this your interest rate increases and can become as high as 390% to 780%!
It is because of these extraordinarily high interest rates that most debt resolution companies will not assist consumers by consolidating their payday installment loans. Since the risks are too great with these types of loans these debt resolution companies do not want to take on that burden of consolidating all of your payday installment loans into one manageable monthly payment.
Since many of these debt resolution companies will not assist consumers with consolidating their payday installment loans it is important for people who take out these types of loans to find other ways to pay off their balances as quickly as possible.
Since you do not want to fall victim to these extremely high interest rates it is in your best interest to pay off these types of loans as quickly as possible. Since you are already strapped for cash it might be rather difficult to find the money needed to make these payments but rest assured there are a few ways that you can go about doing so that you might not have thought of previously.
A great way to help pay back any cash advance loans you may taken out when you personally do not have the money is to get a loan from a family member or friend. You can set up the short term loan from a family member to have a much lower interest rate than the payday installment loan which will make it much easier for you to actually pay off the loan in a reasonable amount of time.
Having this lower interest rate will surely help you get back on your financial feet and stop the downward spiral that is commonly caused by people getting into trouble with payday installment loans.