What is a Personal Loan?
Life happens and sometimes requires unexpected expenses that we aren’t prepared for. It could be an unexpected surgery, car trouble, or a new roof for your home. When these things occur, you have options. A payday loan, an installment loan, or a car title loan are a few ways to get back on track. It can be difficult to decide which loan is best for your situation but we can evaluate the benefits and potential pitfalls of each.
If you have a car or a home, or like so many bear the burden of debt from student loans, you most likely already have an installment loan. An installment loan is when you borrow a certain amount of money from a lender and you agree to pay the amount back in a series of fixed monthly payments, plus interest, over a set period of time. Installment loans are generally considered to be friendlier to consumers than a payday or car title loan and are a great way to build up your credit. Because interest rates and monthly payments are fixed, it is easier to plan and manage your expenses.
Car Title Loans
A car title loan is arguably the most risky loan of the three. Car title loans involve giving the title of your car (or truck or motorcycle) to a lender for a small amount of money. Not only do you have to pay back the money you borrowed, you also have to pay an additional fee. Car title loans typically only allow customers 30 days to pay back the loan. If you don’t pay the loan on time, you may face the very real likeliness of losing your car. This can start a vicious cycle of not being able to get to work to pay off the loan, and getting even deeper into debt.
A payday loan gets its name for payment being due in full on the day you get your next paycheck. The due date of the loan is generally two to four weeks from the day the loan is received and is usually never more than $500. The interest rates are high and the time to pay back the loan is short. Payday loan companies count on you not having the money when you get your paycheck which in turn causes customers to rack up more debt.
SpeedyLoans in Waukegan, IL offers installment loans up to $4,000 for life’s unexpected expenses. If you need extra money on the double, our helpful SpeedyLoans staff is always there to assist you to make your installment loan process as seamless as possible. Can’t make it into our Waukegan location? Apply online.