Instalment Payday Loans

Instalment Payday Loans - Delaying the Agony

In general, there are no such things as instalment payday loans. Why? Because payday loans are defined as small-dollar, unsecured, short-term loans. It is small-dollar because most payday loans are from $100 to $1000, with $500 being the usual amount.

It is short-term because lenders expect immediate payment, i.e., after your next payday. As such, payday loans are usually loans of about two to four weeks.

So the next time somebody offers you easy payday loans, think twice because nothing is easy about borrowing money. How do Instalment Payday Loans Occur?

The term instalment payday loans occurs when you ask the lender to extend the loan. This extension is also known as roll-over in pay day loan lingo. Let's start from the top.

You get a $100 payday loan from a lender and you're supposed to pay $130 ($100 loan amount plus $30 in charges) on your next payday. Later you find that you can NOT pay $130 because it will put a heavy dent on your salary and you won't have enough until the next payday.

So what do you do? You call the lender and ask for an extension to which he happily obliges. And really, easy payday loan lenders are happy to do this because he gets to withdraw only the $30 (finance fee) now BUT he gets to charge you the full $130 again on your next payday date.

It is very easy to see here how you can easily fall into this " Instalments" trap. To be blunt, this is really not paying in Instalments, you are just delaying the agony of paying in full and the longer you delay, the lender is getting $30 richer each time YOUR payday comes around.