Installment loans

Installment loans are loans that are paid back in several cash payments. Generally these loans are for small principal sums between $500 and $1500. The repayments on these loans are spread out over a period of weeks or months, thus giving the borrower ample time to pay back the loan without bearing the brunt of a cut-throat interest rate.

The number of people opting to take out these types of loans has increased in recent months because the borrower has until well beyond their next pay day to repay the loan. This is why installment loans are becoming increasingly popular amongst the unemployed. Those who have lost their jobs in the recent global financial crisis are turning to installment loans as they operate as a type of bridging loan until the person finds a new job. As a result, this type of loan is preferable for those wishing to cover daily living expenses whilst they look for employment. And with over 15 million Americans out of work, it is little wonder that these types of loans are fast becoming the primary method for unemployed Americans battling to make ends meet.

Joe Booker is one such person. Joe was laid-off from his job as a marketing manager in early 2009. Since then he has been relying on his severance package and several installment loans. Joe’s story is typical of many Americans who have been deemed redundant as a result of the recession. Joe admits “I have been trying to maintain the standard of living that I’m used to, but no one realises how tough I’m doing at the moment. That’s why I turned to installment loans.”