Do installment loans in Las Vegas really lend you a helping hand during crisis?
To borrow such an installment loan is very simple.
All is required to complete an online application with basic demographic details. Some lenders also have their stores in various market complexes where an individual can just walk in and complete the application formalities. The loan application approval becomes a matter of just a few hours and the money gets wired to the bank account by the same or very next day. There is hardly any documentation requirements and this quick processing time makes this product as extremely popular and helpful for all in need. Almost all the traditional banks have a huge round of processes and require heaps of documents before authorizing a loan.
A typical payday loan requires a complete repayment of the loan principal along with its accumulated interest. This lender collects a postdated check or a direct account debit mandate from the borrower so the money can be withdrawn after the next salary date. Since it is a short term loan, the contract gets over once this complete payment has been made and the borrower is free from any more liability. A timely repayment makes sure that the credit history of the borrower stays good and he still can borrow without any issues from any prominent lender. The state regulation also defines if the borrower can repay the loan sum by the way of equated installments. All the lenders must follow the guidelines and pass on its benefit to the borrowers by offering such repayment plans. At the same time, the regulation might put prohibition or restrictions over the number of borrowings an individual can make in one year. Accordingly all the lending companies have to follow the same.
installment loans in Las Vegas
Payday loans in Las Vegas looks as a quick money option but we need to have a look at its darker side as well. Such loans are laced with a very high rate of interest. For example, a simple $100 loan for 14 days can attract the interest payment of $15. This may not appear to be a very high amount but mathematically, this is equivalent to an APR of above 500%. This rate of interest is extremely high and more than many of the banking products including credit card. Also some people abuse this product without understanding its financial implications. This is a major reason why multiple states in the US have prohibited lending such loans. The nature of the product and the high rate of interest are sufficient ammunition to drive a person towards bankruptcy. Since the entire loan amount along with the interest is required to be paid off by the end of month, this procedure ensures that the borrower ends up in a new liquidity crisis situation in the following month. Thus there becomes another need of borrowing money. Eventually it all leads to a situation where the borrower finds himself in a big debt trap and loses all the possibilities of safely sailing over it.
No doubt, such loans are a great help in urgent financial crisis. There are situations where these loans are the only viable option. The borrower has to make sure that the borrowing is done only after doing multiple rounds of financial evaluation and planning. One cannot expect a long term financial solution through this product. A good financial understanding and a cash flow analysis is a must where this product is considered. As we have seen above, borrowing money is very easy but the repayment attracts a lot of toil.
