Millions of Americans live paycheck to paycheck and aren’t prepared to handle large surprise expenses. A 2012 study from the Financial Industry Regulatory Authority found that 40% of Americans would find it difficult to pull together $2,000 within 30 days to handle an emergency and would have limited options from a credit perspective.
If you find yourself in a financial crisis, remember that some short-term loan options are safer than others. The wrong choice could wind up costing you hundreds of dollars over the course of a loan. Nerd Wallet took a look at the different credit options available to consumers and came to one conclusion – traditional installment loans are the preferred alternative. According to the post, “traditional installment loans are the best alternative to payday loans for consumers because they provide consumers a clear roadmap out of debt through manageable equal monthly payments that pay off both principal and interest.”