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Installment Loans Help Build Better Financial Health

Every new year is an opportunity to start fresh, wipe the slate clean, and work to do things better. Some of us commit to healthy goals (but pizza and burgers are soooo good), some of us commit to connecting with old friends (even if spending time in your pj’s and sitting on your couch is more fun), but how about building better financial health? If that’s a goal you’ve made, or even if better financial health sounds interesting to you, then we can help.

Many times, it’s the little things we do that create the problems that keep us from reaching our goals.

Let’s first understand what they are then, let’s take steps on the path to building a better financial future using out tips below.

 

Everyone has their story

Money is important. While it doesn’t create happiness, it does make things easier. Unfortunately, things don’t always go as expected. We may occasionally find ourselves in a financial crisis, or we unknowingly do things that jeopardize our finances which prevents us from getting out of debt and building the financial stability we planned on.

Here are examples:

Reduced income

An unexpected reduction in hours or wages, can create challenges that make it difficult or impossible to cover all our monthly expenses.

Divorce

No one goes into a relationship expecting the worst but, some relationships don’t last. The impact can leave us financially insecure.

Poor money management

Bad habits such as spending more than we make, can leave us feeling like we’re in a vicious loop with no end in sight. These are habits that are completely fixable.

Loss of employment

Job loss can be devastating. Depending on where we work, we may experience times of no employment on a regular basis. Bills will keep coming in, and we’ll still need to keep a roof over our heads along with food and water.

Unforeseen medical expenses

Getting sick or having someone in our family get sick can be tough on our finances. In many cases, it can cause us to experience serious financial strain which can be hard to recover from.

 

What to avoid

No matter the situation, it’s important to have the money you need when you need it most. The key is to not put yourself in a much worse position later on, than the one you’re in now. For example, a payday loan may be tempting and seem like a quick fix certain circumstances but, we highly recommend avoiding it for these reasons.

Payday loans promise quick cash for a short term (usually 14-30 days) at a high cost. Getting out of this is not easy; and in most cases, the customer is caught in the “payday loan trap.”

How to spot the payday loan trap:

  • Payments paid back in full, on or before your next payday
  • No installments (monthly payments)
  • No fixed terms
  • No budgeting
  • An active checking account is required
  • The average loan term is 14-days (varies by state and loan amount)
  • Must provide a post-dated check
  • Does not report to credit bureaus

 

How is an installment loan better?

Traditional installment loans require a fixed monthly payment throughout the term, proof of stable income, and address verification. This helps structure an affordable payment plan that can be easily followed.

  • Money is provided quickly but lent responsibly.
  • Fixed monthly payments
  • Fixed repayment terms (installments)
  • Report to credit bureaus
  • Budgeting
  • An active checking account is NOT required

 

Making payments on your account on time, and in full, can help you build – not only your own personal credit – but better financial health for the long term. If you need to consolidate your debt to create one single payment, get a down payment for a used car, cover medical expenses including prescriptions, or even ensure your kids have the supplies and clothes they need to start school, an installment loan can help you!

 

Our Sun Loan offices are located across the United States and when you visit any of our locations, our team of experts will help you when you need it most.