Payday loan is a rather risky financial product, which should be chosen by people who are absolutely certain that they will be able to pay all interest with interest in the short term. If we need more time to regulate our financial situation, a installment loan should be a much better option. A more flexible repayment deadline and a monthly installment tailored to our needs will allow us to rebuild financial stability.
A convenient repayment date tailored to our needs
The main advantage of installment loans is of course the longer repayment period. Payday loans are usually given for 30 or 60 days. If we borrow a larger amount, we are not always sure that we will be able to pay it back on time. In case of any difficulties, there is a risk of falling into a spiral of debts. In turn, an installment loan allows the repayment period to be spread over even 36 months. Low installments will not be a challenge for our portfolio. As a result, although we will pay a little more, we are sure that we will be able to pay the debt without any problems.
The possibility of taking a larger amount of cash
The payday loan requires a large, one-time repayment. Loan companies, before granting payday loans for a larger amount, very strictly assess the customer’s creditworthiness. In the case of installment loans , the company is aware that it is much easier to pay back a larger liability in the long run. In this way, we are able to apply for a much larger amount of funding to cover even large expenses. People with an average credit standing may receive over PLN 20,000 in this option.
A chance to improve your financial situation
A short-term loan may mean a temporary improvement in the financial situation, but with difficulties in paying it back, we risk having debts. In turn, the smaller installment loan allows us to catch the actual breath, without worrying that in a month we will have to give the whole amount. We can improve our financial situation for a longer period of time. In many cases, installment loans will therefore be a much better option than payday loans.