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Installment Loan better than Overdraft Fees?
#11
(01-03-2018, 05:59 AM)Henrywrites Wrote:
(12-28-2017, 07:39 AM)Michael Puttman Wrote: In this articleThaddeus King, an officer of The Pew Charitable Trusts’ consumer finance project, says that installment loans are a better choice than overdraft fees.  I think the problem is that banks are not allowed to offer small-dollar installment loans. But what about non-bank installment loans? Would that not be just as good (if used properly)?

There is the existence of microfinance banks that are into savings as well as giving loans to customers that are really looking forward to paying these loans on a monthly basis. These banks has been created to handle the issue of giving small dollar loans and their main target is to give soft loans to small business owners that would be paid over a period of 6 months to a year and the interest is not that huge compared to what we have with payday loans. 

This is very common in Nigerian banking sector, it's vision and mission statement is to make sure small scale businesses get the necessary funds needed for them to set up and run their business by paying back such soft loans given to them in installments with little interest. 

The activities of these micro finance banks have been very helpful to several people in the state. I can easily attest to more than 5 people who got such loans from these banks to finance their already owned business which they successfully paid back with interest and have their business take a great shape.
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#12
Yes for me it is. Installment fees don't swiftly your bank account suddenly. And installment fees you can monitor your expenses. You pay your things inch by inch.
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#13
(01-01-2018, 10:40 PM)Michael Puttman Wrote: Overdraft fees are killer. I check my bank account balance every night before I go to bed to make sure I have enough money in my account

Anyone who is always conscious of his financial well being will do everything humanly possible to stay the heck away from taking overdrafts because the fees it comes with are horrible. It's always better to go for loans that one can pay for on installmental basis, by this way one would be afforded time and peace of mind to work towards getting such loan with the interest attached to it within a specific period of time.
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#14
(12-28-2017, 07:39 AM)Michael Puttman Wrote: In this articleThaddeus King, an officer of The Pew Charitable Trusts’ consumer finance project, says that installment loans are a better choice than overdraft fees.  I think the problem is that banks are not allowed to offer small-dollar installment loans. But what about non-bank installment loans? Would that not be just as good (if used properly)?
If used properly, as you mentioned. It works for me very well, and i can say it works for almost everyone i know that avails it. Maybe it depends on how or who avails it but i definitely prefer and recommend it rather than overdrafts.
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#15
I have an overdraft because I'm willing to pay ~$5 a year for the security of knowing I can use an extra $1,000 in my account and pay it back later if absolutely necessary. For an installment loan I would need to have a specific purpose and timeline in mind for it, and have the time to apply for it and be approved when I need it!
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#16
(01-01-2018, 10:40 PM)Michael Puttman Wrote: Overdraft fees are killer. I check my bank account balance every night before I go to bed to make sure I have enough money in my account

Yes, I don't check it every night..but I am pretty careful about how much I have in my bank account. I one time was writing checks and racked up several overdraft fees before I even realized there was a problem. That was awful!
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#17
The problem with an installment loan is that you need to apply for it and get approved. Then you have to repay it for a certain amount of time, which is another burden.

People should go overdraft only when absolutely needed, in case of emergency for example.
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#18
I think it is much better if to get an installment loan since you pay fixed equated monthly installment (EMI), you can just worried on your monthly payment. Overdraft fee is much more expensive to start with. If you are a practical person, you should go with installment loan, since the EMI is much cheaper that Overdraft fee. But overdraft fee also have advantages since you can just withdraw a desire amount even if your balance is low, you just need to pay the penalty if the threshold is hit or if you exceed to your threshold and it is an additional fee for you, on the other hand, you can arrange an overdraft protection to make sure that you will not hit the threshold. There's also a disadvantage on installment loans since the lender need to approve you as a borrower and you have a certain span of time agreed to pay your loan.
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#19
In this article, Thaddeus Lord, an officer of The Pew Charitable Trusts’ consumer finance project, says that portion credits are a superior decision than overdraft fees. I think the issue is that banks are not permitted to offer little dollar portion credits. In any case, shouldn't something be said about non-bank portion advances? There is the presence of microfinance banks that are into investment funds and additionally offering credits to clients that are extremely anticipating paying these advances on a month to month premise. These banks has been made to deal with the issue of giving little dollar advances and their fundamental target is to give delicate credits to entrepreneurs that would be paid over a time of a half year to a year and the premium isn't that enormous contrasted with what we have with payday advances.
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#20
(12-28-2017, 07:39 AM)Michael Puttman Wrote: In this articleThaddeus King, an officer of The Pew Charitable Trusts’ consumer finance project, says that installment loans are a better choice than overdraft fees.  I think the problem is that banks are not allowed to offer small-dollar installment loans. But what about non-bank installment loans? Would that not be just as good (if used properly)?
When you say non-bank installment loans would that lean more like payday loans. I could only find places you could possibly apply online but nothing local especially if you are looking to get roughly $500-$2000 or whatever small amount. I think if the payday loan or no credit needed loan is your best interest at that time then I say do what you need to just be mindful of researching the company you go through. 
I know that getting an Installment loan like that maybe charge you a higher percentage to take out the small loan amount. I tried to find places that provide installment loans it seems most are online payday type loans. What other places can you find to be able to get small Installment loans? I think if you have no or low credit and the payday or small installment loans would be good for you as well as if you pay it properly then obviously it will benefit you, you needed the money.
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