Benefits of Long Term Payday Loans

Long term payday loans may be a better option than their short term counterparts. Short term loans come due very quickly, and this can often result in the inability for a borrower to pay. With a long term loan, there is more time for a borrower to recover from the immediate consequences that lead to the need for a payday loan in the first place. 

Avoid Compounding Fees

Long term payday loans may have higher initial interest rates than short term payday loans. However, when a borrower fails to repay a short term loan on time, the interest on the loan may compound and fees can become costly. By agreeing to the slightly higher interest rate up front, a borrower can buy more time to repay a loan correctly. This can eliminate the risk of compounding fees.

Installment Payments

Short term payday loans have one maturity date when the entire sum of the loan must be repaid. If a borrower cannot make the loan payment in full, they are in default. With a long term loan, there may be regular installments. A borrower can make these payments in small amounts. If one payment is short or late, the entire loan will not immediately result in default.

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