Most people who live with a fixed income oftentimes face financial and credit problems. Unexpected expenses happen. Emergencies that need instant cash can arise. The worst part is the times when the need is very crucial and so urgent that you can’t wait for the next payday to come, even if it is only a couple of weeks away. For this situation, a cash advance installment loan can be the most suitable solution to resolve the problem.
There are many short-term loans available in the financial market, but most of the repayment plans they offer are quite burdensome for many borrowers. In addition, problems soon arise after getting these loans because most of the repayment plans often include repaying the debt after two weeks or within a month.
Therefore, borrowers had a hard time repaying the debt. Before they can actually cope with their financial difficulty, they need to repay the loan amount. They barely have enough time to survive from their financial emergency. Added to their dilemma, is the fact that they have to repay in a single payment the whole principal amount with the interest. Borrowers have to pay for additional fees and high interest rates if repayment is not made on time.
To overcome these problems, lenders have introduced cash advance installment loans with easy repayment plans. The repayment plans of cash advance installment loans are advantageous and stress-free for the borrowers. Why? Because of three reasons:
1. Cash Advance Installment Loans have a fixed schedule.
As its name implies, cash advance installment loans can be repaid in periodic payments or in installments that are remitted to the lender on a fixed schedule. Factors considered in establishing a repayment plan, which will be divided in periodic payments, include the principle amount, the duration of the repayment plan and the interest rate agreed upon by both parties before the loan is completed.
This kind of repayment plan or pre-arranged plan of repayment is often considered desirable and convenient for borrowers because it provides regularity in budgeting and calculating their monthly expenses. In addition, borrowers are always presented with this proposed repayment plan and a pre-determined amount before finalizing the loan agreement. So, it creates an opportunity for borrowers to shop elsewhere if the repayment plan is not desirable or to burdensome to repay. Although the frequency of the payments can be altered by the lender before the loan is closed, most of the payments are remitted and repaid on a monthly basis.
2. Most Cash Advance Installment Loans repay the interest rate first.
Depending on the lenders policies and practices, cash advance installment loans can be repaid in several different ways. Some lenders propose a certain percentage of each payment to be applied in the principle balance and another percentage to be applied in the interest. The most common repayment plan offered by lenders is that the bulk of the interest be paid in the first several payments, and then the principle amount be paid after the interest payments are fully paid. This kind of arrangement is known as the amortization table, and is presented to the borrower before closing the deal.
3. Cash advance installment loan is repaid in a fixed amount.
The most beneficial repayment plan offered by cash advance installment loans is having a fixed amount to be repaid. The amount can’t be modified for the whole course of the loan, and rarely varies despite changes in the financial market.