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.”

Alternatives to Payday Loans Can Help You Dodge Debt Trap

Installment Loans Can Help Avoid Payday Loan Debt Trap

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