For some people, the term “installment loan” might sound a little distant. However, installment loans are more common than you may expect. These loans are just another method in which you can borrow a set amount of money for a specific purpose. The main difference between installment loans and other forms of revolving credit, such as credit cards, is that you need to decide the exact amount of money you need beforehand.
After you set the amount of the loan, you will need to determine the term of it and how you are going to pay it. Of course, as it happens with almost every single loan method in our country, there are fees for installment loans that you need to know. The reason they are called “installment loans” is because each payment made monthly is called an installment. Are you familiarized with these loans already? We will give you some examples.
Before going deep with installment loan fees, we must first understand what they are. Generally, almost all the common loans that people apply for are considered installment loans. As simple as that. This means that your auto loans, that help you pay your beloved car, are also an installment loan. You pay for your car monthly with lent money for a certain period of time. Of course, the more time you take to pay for your car, the more money you will end up paying.
The same happens with mortgages, which is a kind of installment loan to buy a house. In this case, interest rates are fixed due to the high amount of the loan. So, if you are thinking about the average fee amount for an installment loan the answer is simple – it depends. It’s not the same to buy a house as to ask for a personal loan, for instance. In this case, paying a medical bill with a personal loan usually takes up to 96 months, while paying for a house can take even more years.
The best thing about installment loans is the fact that you can predict how much and when you are going to pay off your debt. If you pay on time, there will be no installment loan fees. This creates the need to educate ourselves in order to prevent financial emergencies in our pockets. Besides, with installment loans, you can know the specific date that the debt will be totally paid off. The shortest the term, the less you pay.
At this point you must be wondering “if Microeconomics has that range of study, what does Macroeconomics explain?”
Well, it is the study of the economy as a whole, determining the internal and external policies that affect how a country interacts with other nations.
Instead of individuals, it takes in count huge companies, entire industries and economic sectors.
It also is responsible for determining the inflation rate and stimulating the economic growth of a country. The choices that Macroeconomics make, directly affects the wealth of individuals as well as their acquisitive power, which means, Microeconomics.
When you apply for installment loans online, you should pay attention to all the information that the lending company can provide you. Usually, it is easy to see the estimated Annual Percent Rate before applying for the loan. Obviously, this will hardly depend on your credit score and your overall credit health. This means that it is not possible to offer a determined range of fees without analyzing your profile because the loan entirely depends on your credit history.
In any case, you as a borrower should take a close look at any kind of fee that might appear. For instance, late fees on installment loans are common, not only in this kind of loan but in any method of revolving credit. If you fail to pay within the specified time, then be prepared for an increase in your monthly payment. So, if you miss a payment on an installment loan, don’t doubt that there will be repercussions that also affect your credit health.
Besides, it is possible that a lender can demand an application fee which will increase the amount of the money you pay upfront. The credit check fees can also appear and are also a significant factor to change the rates you are expecting to pay.
Either way, it is crucial to understand that installment loan fees usually appear when you fail to pay as you should. If you focus on paying on time, an installment loan can actually become a great way to improve your credit situation. Keep in mind that all these methods are tools that we can use to our advantage to improve our financial life.
Whether you are a believer or not, you need Microeconomics to explain your behavior in purchases decisions and acquisitive power.
The United States has been going through one tough situation since last year. where people are struggling to live while the middle class shrinks as their wages aren’t keeping up with production and the annual inflation. But why is this happening? Can someone really say that the prosperous times for the US have ended?
The truth is that this can all be explained.
You can clearly see that the struggles people are having to live in the US are because of an expansive economical policy that derives into inflation and higher prices. The costs of Health insurance, education and housing are increasing but not their income, and this, is a sign of an unbalance in our economy caused by wrong internal decisions and external financial threads, and they will turn into the market in the form of less consumption and personal controls like:
- Eating at home more than going out.
- Measuring your monthly expenses.
- Setting a budget in order to save money for your emergency fund.
- Changing your newer car into an older one.
- Reducing your staff in your small business.
Those are small changes that affect your financial situations, hence your consumption patrons.