Instant Installment loans are a great invention by banks, credit unions, and retail stores.  They provide people with the ability to get items that they want and need.  If you have considered getting an installment loan but not certain if it is a good choice there are five top reasons why you may want to change your mind.

If you make a purchase it provides you with the ability to buy an item on credit.  You don’t have to wait for a long period of time to take your items home. You can keep your savings intact.  Everyone should have an emergency fund and you don’t want to give up all your savings for an item if not necessary.

Installment loans allow people to buy more with less.  Even if your income is loan you can still get approved.  It lets you stretch your income to that of a higher tax bracket.

Many companies now advertise low interest rates or same as cash ability.  This provides you with a way to keep your cost of purchase low while still getting the item upfront.  The cost to acquire is just like making cash payment.  It would benefit you to do this even if you have the funds to pay with cash.  You can take your cash and invest it in a money market account or savings account while you are making the monthly payments.  When it gets close to the final payoff you can then withdraw funds.  You would have earned additional money by doing this.  This is close enough to getting the product or service free for many months.

Many installment loans are easy to get.  Many stores use in house financing to approve customers.  They eliminate banks or other lending institutions to allow you to go direct.  The time it takes to get approved is instantaneous. 

When you repay the installment loan it will improve your credit rating.  Because you are now a trustworthy customer the store will then allow you to get another loan.  This time the loan amount might be increased due to past history.  You can make even larger purchases.  If that new electronic gadget has caught your fancy, or you want a new car or new piece of furniture you have a better ability to get it.  This will stay on your credit for seven years.  This has the opposite effect of a broken mirror.  With this you’ll get seven years of good luck.

Short Term Loans are great to use to acquire purchase with a large monetary value.  If you don’t have the money now, you can pay it back in small payments.  It will help improve your credit score and stretch your income.  Most are simple to get approved for so why not take advantage and use it for the items you want today?

People that create debt and then don’t pay it do not realize the affect it has on the US Economy.  If you have any type of loan whether it is a home loan, car loan, installment loan or unsecured personal loans and do not repay them it can mean a person’s job or small business.  The action that you take has a butterfly affect somewhere else.

The trail starts with you the consumer.  You get a loan and do not pay it back.  You default on the loan.  You then get apply for bankruptcy to clear these debts off your financial obligation.  However, the bank or credit card company still paid for the purchase that you made.  They are left holding the debt that you do not repay.

In the past the US economy did not have a large portion that depended upon the consumer.  However, in the present day when people do not buy consumable goods it threatens the state of the economy on the brink of a recession or even depression.  The government is then forced to take action.  This can take the form of tax credits, tax cuts, or even refund checks.  All of these cases will mean an increase in taxes that many citizens do not want.

When consumers don’t pay back their unsecured personal loans their credit score suffers.  This limits their ability to make purchases and get new instant loans.  The purchases that they cannot buy are from companies and businesses that depend on these sales to make profits.  These profits affect the number of people that they hire and items they do buy from their suppliers.  When this drops they are forced to lay people off.  This increases the unemployment rate and less money is circulated.  The other alternative is that they are forced to send jobs overseas for cheaper manual labor to still make a profit.  This still creates the same result; less jobs in the US.

As people lose their jobs or incomes decrease, the amount raised by income taxes also decreases.  The budget is based upon the expected income taxes from individuals and businesses.  If they cannot meet their budget they may borrow money from citizens via savings bonds or foreign countries.  This puts America in debt to others because people cannot or will not pay their bills.

Debt is good if used to by an appreciating asset.  However, most unsecured personal loans do not use collateral to obtain.  Nor are they generally used to get an appreciating asset.  The above scenario keeps repeating itself until people are able to pay back home loans, credit cards, installment loans, unsecured personal loans, and meet their financial obligations.  This is how the US economy will improve by climbing out of the sinkhole of debt, one step at a time.

Unsecured loans are easy to acquire if you are employed.  If you aren’t employed and need cash you may try and get a loan from a family member or friend.    However, if a friend approaches you for a loan should you help them get it?  Even if they are your best friend and you trust them completely that is a bad decision to make.  There are seven reasons why you shouldn’t co-sign unsecured loans for your buddy.

The number one reason to not co-sign is that if they don’t pay they will default on the loan.  Your name is listed as the other party.  You may not find out that they haven’t made any payments until the balance is large and looming.

If you loan to a family member they could still default on the loan.  However, as your relative you have an idea of who their parents are and where they live.  You have the capability of tracking them down and recouping your money if necessary.  A friend can move and you wouldn’t have an idea where to start looking.

As the cosigner you are responsible for this debt if they don’t pay.  This can occur at an unexpected time.  Lenders will start harassing and calling you for the payment.  Whatever item or service your friend received with the money from the loan you won’t have.  You are simply throwing money away.

This unexpected obligation will decrease your monthly budget.  If your income is already tight then this can create a problem for you.  You may need to pay with your savings or even borrow money yourself.  If you become unemployed and your friend defaults you have no way of paying it back.  If you default on the loan yourself if will have a negative rating on your credit.  This can prevent you from getting a loan in the future.

Most friendships end due to money problems.  They may be the best friend you have and do anything for you.  The problem is that they may not be trustworthy when it comes to their debts.  You do not want to be their enabler and help them create more bad debts.  You can simply tell them that you are not able to sign them the loan.  You can be honest and upfront or not.  It is up to you.  This may be what they need to help them to change their ways.

Unsecured fast loans are great when you make the loan yourself.  You made the decision to take out the loan and repay.  If you co-sign you could end up with the loan without the object that that loan was used for, bad credit, decreased monthly budget, and loss of a friend.  If you still decide that you want to make the loan be prepared in the event that they don’t repay.

When you get married you are in love and expect to spend the rest of your life with that person.  Sometimes the person is not who you expected, you are no longer compatible, or you simply fall out of love.  Once this happens most people will decide to get a divorce.  Any debts, unsecured personal loans or other obligations created will still need to be repaid.  Who then becomes the lucky recipient of these debts?  There are a few factors that will determine the answer.

What was the loan originally used to purchase?  If it was towards a house mortgage, credit cards debts, or car repair, but of you may be held responsible no matter who took out the loan.  You can make your case in court with the assistance of your lawyer to have the borrower (if it wasn’t you) be responsible.

The state you live in can have a major factor in who may pay any unsecured personal loans.  California is known as a state that splits debts and income 50/50.  It doesn’t matter when the debt occurred, who got the loan, or what it was used for.  Both parties will be responsible.

Other states such as Georgia indicate that any debt that occurred prior to the marriage is the property of the borrower.  This may save you if you didn’t take out the loan.  If you did get the unsecured personal loan and it was used by your spouse you can indicate that to the judge you can possibly deduct the amount of another debt that you might be responsible for.

The Judge is God when it comes to the courtroom.  They make the determining factor as to what the final decision will be.  This is the last stop if you have exhausted compromise with your soon to be ex spouse and negotiation tactics.  If this ends up becoming a long drawn out fight the judge will make your decision for you.  This is not necessarily in your best interest.  You will want to speak with your ex and try to talk about all debt and come to a happy medium. 

Divorce usually divides up all debts and assets evenly.  So be mindful of what your spouse buys.  What they buy today could be paid by you in the future by yourself.  Depending on the amount of the debts it could limit your spending capabilities and budget for years to come.  Unsecured personal loans are usually decided by both persons while married, but end up becoming a war battle when divorce happens.  Unless you live in a state that excludes prior debts you will probably end up paying half the cost.  It might taint your credit.  Lenders won’t care that you are divorced and try to recoup monies from all sources possible.  They do not want to write it off as a bad debt.

Most people when they get instant installment loans intend to repay.  They make the purchase with the commitment to pay for the item or service received.  Unfortunately, a major event or crisis occurs which causes the borrower to become unable to pay.  One such event is unemployment.  This is the number one reason why most people can no longer afford to pay the loan.  If this should happen to you are there any options available?

When you realize that you are unable to make your payments.  You should contact the customer service department where you got the loan immediately.  They are more likely to work with you when you bring this to their attention.  Because you are probably still shown as a current and on time customer they see that you are honest and willing to repay.  Many times they may lower the interest rate or lower the payment amount temporarily.  They may assign you a customer service representative to your loan that you will speak with on the status of your installment loan.

Another option is to refinance it with a spouse, family member or friend.  This may not be as easy as it seems as your spouse may not be able to make the payments either if both incomes were needed to meet the family budget.  Sometimes friends or family members don’t have the funds or won’t loan you the money.  It never hurts to ask if you are in a bind.

You can contact a credit counseling service.  They are sometimes able to consolidate this loan with any other debts you might have into one loan.  In many cases this amount is less than all of the total payments together.  This frees up your income and allows you to conserve any savings that you might have until you get another job.

You can get a part time job or get more than one part time job.  Although this may not be equal to your income prior to unemployment, it will allow you to still pay your bills.  You can do this temporarily until you get a fulltime job.  You might find that the part time job might lead to a new full time job.

You can decide to do nothing.  This is the worst decision to make.  The Instant loans that you have will not disappear and neither will the people who demand payment.  They will call your house constantly and ruin your credit.  You will not be able to avoid the calls forever.  This will increase your stress and impair your health.  Most illnesses are caused by stress.

Installment loans are debts that are made by companies that expect to be repaid.  Should you become unemployed you can refinance, contact the company to make a deal, use the services of a consumer credit counseling service, get a part time job, or file for bankruptcy.  Don’t allow your credit to be ruined.  Try all avenues before defaulting on the loan.