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Learn the Benefits of Paying off Payday Loans with Low-Interest Installment Loans 
December 16, 2024
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Payday loans las vegas
If you’re feeling weighed down by the financial burden of payday loans, you’re not alone. These short-term loans often come with sky-high interest rates, making it difficult for borrowers to get ahead financially. Fortunately, there’s a better solution: low-interest personal installment loans.

Switching from payday loans to a monthly installment loan can save you money, improve your credit, and provide long-term financial stability.

First, we will give a brief overview of the differences between a payday loan and an installment loan.

Payday Loans vs. Installment Loans

Payday loans are short-term loans designed to help borrowers cover urgent expenses until their next paycheck.  It is a quick fix but can come with big risks.

Personal installment loans are designed to provide more manageable repayment terms and lower interest rates.

Payday Loan

 
  • Sky high interest rates (usually APRs are greater than 300%)
 
  • Short Repayment Terms (2 weeks-2 months)
 
  • Debt Cycle (stuck in a cycle of rolling over payday loans for higher fees and interest)
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Installment Loan

 
  • Lower Interest Rates (competitive rates)
 
  • Flexible Repayment Terms (months-years)
 
  • Build Good Credit (positive payment history can improve your credit score)

 
Why Las Vegas Finance Monthly Installment Loans Are a Better Choice for Managing Debt

1. Significant Savings on Interest
Payday loans’ high APRs can quickly turn a small loan into a massive financial burden.  By switching to a low-interest installment loan, you can save hundreds- if not thousands- of dollars over time.  We at Las Vegas Finance offer competitive interest rates that are much lower than any payday loan.

For example:

  • A $500 payday loan with a 300% APR could cost you $575 to repay in just two weeks.
  • A $500 installment loan with a 30% APR might only cost you $515 over a month, depending on the repayment term.


As you can see, monthly installment loans are a more affordable choice than payday loans.


2. Predictable Payments
One of the biggest drawbacks of payday loans is the lump-sum repayment.  If we look at the example above, you would have to pay the whole lump sum of $575 in just two weeks.  With one of our installment loans you determine the repayment term that fits your budget and you could repay the $500 plus interest over a period of 3 months, 6 months, or even a year.

With a Las Vegas Finance personal installment loan you can have predictable, evenly distributed payments that fit your budget.

3. Build Credit with Positive Payment History Reporting
We, like many installment loan providers, report your positive payment history to credit bureaus, which can help improve your credit score over time.  Having a consistent loan over many months shows creditors that you responsibly pay your debts on time.

Better credit can lead to lower interest rates in the future.  We want to help you build your credit.

4. Avoid the Debt Cycle
With payday loans, it’s easy to fall into a debt trap by continuously borrowing more money to cover the previous payday loans.  As the high late payment fees and additional high-interest loans continue to stack on top of each other, your debt quickly snowballs into something that is hard to ever pay off.

Personal installment loans break this cycle by offering manageable repayment terms so you can become debt-free.

How to Pay Off Your Payday Loan with an Installment Loan

 1. Write down all of your Payday Loan Debt: List all of your payday loans.  Include the balances, interest rates, and due dates.

2. Apply for a Personal Installment Loan: Look for a trustworthy lender with competitive rates and flexible terms.  Many lenders offer an easy online application.

3. Consolidate and Pay Off your Payday Loans: Use your new installment loan to pay off your payday loans in full.  You have just traded your highest-interest loans for lower interest and a longer period to pay them off.

4. Pay your Installment Loan Payments on Time: Make your monthly payments on time.  With manageable terms and lower interest rates, you will find it easier to make progress paying off your debts.

5. Monitor Your Credit: Watch your credit score improve as you establish a consistent payment history.

Example:
Mary, a Las Vegas Resident, had 3 payday loans totaling $1,400.  Her debt was quickly snowballing into more debt than she could hope to pay off.  She decided to switch to an installment loan.  She received a $1,500 personal installment loan to pay off her payday loans in full and had just a little bit of extra cash so she could stay ahead.

Over 12 months, Mary’s monthly payment was $133.  This was determined by her to be a manageable amount that allowed her to also stay current on her bills.  By the end of the 12-month term she had paid off her loan, saved money on interest, and improved her credit score.
 

Get Ahead with an Installment Loan

Don’t let payday loans control your financial future.  Switching to monthly installment loans can help you save money on interest, build a strong credit profile, and break free from the payday loan cycle.

If you are considering paying off your payday loans with an installment loan, take the time to research lenders who offer fair, flexible terms, and who want to help set you up for long-term success.

At Las Vegas Finance, we understand the challenges of breaking free from payday loans. We specialize in offering low-interest personal installment loans with terms that work for YOU.  

Our process is fast, there is no cost to apply, and you can get approved today.  Visit our Las Vegas office, apply online, or call (702) 889-9888 today.  
 

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