Installment loans are loans that are paid back in several cash payments. Generally these loans are for small principal sums between $500 and $1500. The repayments on these loans are spread out over a period of weeks or months, thus giving the borrower ample time to pay back the loan without bearing the brunt of a cut-throat interest rate.
The number of people opting to take out these types of loans has increased in recent months because the borrower has until well beyond their next pay day to repay the loan. This is why installment loans are becoming increasingly popular amongst the unemployed. Those who have lost their jobs in the recent global financial crisis are turning to installment loans as they operate as a type of bridging loan until the person finds a new job. As a result, this type of loan is preferable for those wishing to cover daily living expenses whilst they look for employment. And with over 15 million Americans out of work, it is little wonder that these types of loans are fast becoming the primary method for unemployed Americans battling to make ends meet.
Joe Booker is one such person. Joe was laid-off from his job as a marketing manager in early 2009. Since then he has been relying on his severance package and several installment loans. Joe’s story is typical of many Americans who have been deemed redundant as a result of the recession. Joe admits “I have been trying to maintain the standard of living that I’m used to, but no one realises how tough I’m doing at the moment. That’s why I turned to installment loans.” online installment loans
It is important to remember, however, that companies do monitor their approved borrowers. Most companies are opting for ‘tele-tracking’, which is a method for assessing the borrower’s payment status. This means that it is vital for borrowers to make their repayments on time.
Who is eligible?
Eligibility for this type of loan varies between lending institutions. It is possible, however, for most people, even if unemployed, to gain access to installment loans. In many cases, applications can be completed online and approval is made within hours of lodging an application form. For access to fast cash quickly that need not be repaid for several months, it is well worth investigating your options in installment loans.
Reaping the benefits
The biggest benefit of taking out installment loans is that you have plenty of time to repay the loan. This relieves you of financial pressure and enables you to concentrate on consolidating debt and solving financial problems. This is particularly important if you are recently unemployed, as your focus needs to be on finding a new job.
The solution to unemployment
In times of recession when unemployment inevitably increases, it is important to have access to fast and easily obtainable cash. Many Americans are struggling to cover the basic costs of living in the wake of the global financial crisis and installment loans are helping them bridge the gap and stay afloat during this difficult phase of high unemployment.