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Installment Loans for Common Emergencies

What happens when something unexpected and expensive pops up? An unexpected illness, car repair or even a veterinary bill can be a major setback and often there’s no way to be financially prepared. According to the Federal Reserve, 40% of Americans cannot cover a $400 emergency expense. These emergency expenses can send us into panic mode, but remember there’s help. One way to pay for a common emergency is with an installment loan. 

What is an Installment Loan?

An installment loan is a type of loan where you borrow a certain amount of money up front and pay it back through smaller, monthly payments over a set period of time. You’ll have a payment schedule to follow which will include the dates your payments are due and the amount you’re expected to pay each month.

Examples of installment loans are loans for your automobile or home. It could take a lifetime to save enough money to cover the entire cost of a car or house. Lenders will loan you the money so you can get what you need now. This is why getting an installment loan to cover unexpected bills and small emergencies makes sense. Work with your lender on a flexible repayment plan that works for you.

Installment Loans vs Payday Loans

Installment loans give you a clear path on how the money will be paid back. You’re restricted from borrowing additional cash from your lender until your first loan is paid off.

Payday loans typically have a higher interest rate than installment loans, and instead of month to month payments, you are typically required to pay it back within a few weeks or on your next paycheck. Because you have to pay interest in addition to the amount you just borrowed all at once, and because companies offering payday loans do not work as closely with you to make sure you will be able to pay back what you have borrowed, you may end up accruing a debt that is too much for you to pay in the short time you have to do so. So, you need more money to pay back the money you borrowed.

Emergencies Happen

Life happens, and we are not always prepared for emergencies. For financial emergencies under $1,000, installment loans can help. Whether you need cash fast to pay off a veterinarian bill, refresh your closet for a new job, or upgrade the tires on your car, installment loans can give you the temporary support you need.  

 

Veterinarian Bill

If you have a pet, you know that sometimes it gets sick too and requires special care. Afterall, they’re an extended part of your family. What if, one day while you are at work or away, your dog gets into a big bag of chocolates and eats them all. Because chocolate is poisonous to dogs, you’ll want to take it to the vet as soon as possible. At the end of the day, your dog is safe and healthy, but you now have a $400 vet bill to pay that you weren’t expecting. 

 

Attire for a New Job

You have been applying for jobs, and you finally got the interview you have been hoping for. The interview is business casual, and if you get the job, you will be required to dress professional each day. You are on a budget and can’t afford to go out and buy a whole new wardrobe, but you also know that you need to dress appropriately, and by having a new job, you will be able to pay off whatever money you spend towards clothing. You need $500 to get a blazer, a few pairs of slacks, and maybe some shoes to go with your new job attire. 

 

New Tires for Your Automobile

Owning or leasing a car can be expensive, especially when your car is in need of upgrades. Take tires for example. It is important to get your tires rotated and changed when they begin to wear down or driving your car can become unsafe depending upon a lot of different factors, like how often you drive, the kind of terrain you have been driving on, and the quality of the tires you currently have. It is not safe to drive down a slick Texas road with bald tires, but purchasing new tires can cost anywhere from $400-$800 dollars. 

 

Replacing Your Prescription Glasses

Maybe you wear contacts or glasses. You are backing out of your driveway one day, and you feel your car go over a bump. You open the door, and when you look down, you see you’ve accidentally run over your prescription glasses. Not only do you have to buy a new pair of glasses, but an updated prescription may be required. This appointment along with purchasing the lenses and frames for your new glasses can cost at least $300.

 

The Emergency Option For You

If you need to take out a short-term loan because you are low on cash, installment loans can be the best option for you. Emergencies happen. Just make sure you really understand the terms and conditions of your loan agreement by asking questions. Be realistic with yourself on how much you should borrow based upon how much you will be able to pay back over time. Most importantly, don’t be afraid to ask for help if aren’t sure what to do. 

 

For more information on installments loans and whether or not they are right for you, visit any of our Sun Loan locations and chat with one of our professionals.