Installment Payday Loans Guide

Installment Payday Loans GuideInstallment payday loans would be great because they’d use your job as your collateral the same way a payday loan does, and they’d be able to be paid back over time, the way an installment loan is. That would give you the cash you need on the spot, and the time you need to recover from your financial set back.

There’s technically no such thing as installment payday loans, because payday loans get their name by being linked to and due on your payday. They specifically can’t be paid back in installments, because payday lenders claim they’d go out of business since their profit margins are so thin due to the high risk lending they’re in. But many borrowers end up turning payday loans into installment loans much to the chagrin of the lender. How do they do this? Read on:

How to Make Your Own Installment Payday Loans

The information provided here is for educational purposes only, and is not meant to be used by anyone ever. It’s what I observed many borrowers doing several times while employed at a major national payday lender chain.

If you want to pay your payday loan off in installments, go and get a payday loan like you normally would. Make sure that it’s with a lender that accepts a paper check and expects you to come back on your payday with cash to pay the loan back. On your payday, bring the lender the payment you’d like to make, and tell them you don’t have enough to pay the loan off completely. Let them know when they can expect the rest. On your following payday bring in another payment and update them on your status. Be sure there’s not enough in your bank account for the lender to cash the check you wrote to them, because this method does not prevent them from verifying your funds and getting the full amount if they can. And they will check.

The likelihood that they will amp up their collection efforts when you have a promise to pay, and you’ve already paid back a portion of your loan, is low. You’ll fall into a different class of borrower, one step above those that don’t repay and don’t call or make any contact with the lender. Do this one too many times and they might not re-loan to you, but that’s a risk most are willing to take in order to get out from their debt and avoid paying the fees again by re-loaning.

State-Mandated Payment Plans
One of the best things you can use when it comes to payday loans is if you’re in a state that has a state-mandated payment plan. The details vary by the state, but they typically force the lender to give you multiple paydays and to break your balance up into multiple payments so that you can pay it off over time. Some states only allow this after you’ve loaned X amount of loans in X amount of time, so you’ll want to check the details on it, and of course other states don’t even offer it.

Online Loans
One way to get the cash you need in an emergency and to pay it off over time is to get an online loan. There are online loans that can give you cash into your account right away, and will take monthly payments until you pay off the remaining balance.

Personal and Title Loans
If the amount you need is large enough and if you qualify you might be eligible for a personal loan from a bank, which is typically paid off anywhere from one to three years. You might also consider an auto title loan if you have a qualifying car. These can net you larger loan amounts and are set up to be paid over time. They usually come with better rates than a payday loan, but of course you’re using your car as collateral and that’s not an option for many people.

Installment payday loans is something that needs to be seriously considered when it comes to payday loan reform. The short borrowing period is what leads most people to end up in the payday loan trap, and it is the reason why the APRs always look astronomical. If borrowers were allowed to keep the money for a longer period of time they would be able to get back on their feet on subsequent paydays and not need to re-loan the money again, paying all of the fees again.

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