According to the National Consumer Law Center, the
benefit of installments loans is you have more time to make the payments; the
downside is the payments on these high-cost loans go exclusively towards the
interest, possibly for up to the first 18 months.
The industry,
for its part, argues that just as with payday loans, higher interest rates are
needed to counter the fact that non-prime consumers are more likely to default.
Typically,
payday loans seemed to target the nation’s poor, but installment loans the
bulk of their growth has been fueled by the middle class. About 45% of online
installment borrowers in 2018 reported annual income over $40,000. Roughly 15%
have annual incomes between $50,000 and $60,000, and around 13% have incomes
above $60,000. This is a scary trend because there’s even more people affected,
and the debt is even more severe.
I want to warn you away from these online installment
loans, there are consolidation companies, credit solution people that can often
times help. Make sure you go to a reputable website, go through the better
business bureau site, do your homework.
No comments:
Post a Comment