Economic Wellbeing and Financial Stability

Debt, of course, directly impacts consumer credit ratings and credit scores, and thus economic wellbeing and financial security. There are many types of online loans – installment loans, interest loans and overdraft loans, to name a few. In choosing one, make sure it best responds to your own needs.

We all know what the risks of owing money are. That’s probably why you’re visiting our web site. You need a small loan to hold you over in order to get out of debt and are considering the various options for online loans to improve your financial stability – sometimes called financial wellness.

There are many different types of short-term online loans to choose from. Some of them, however, impose terms that can entrap you in an endless debt spiral rather than tide you over until you can repay them. Those sorts of short-term loans might risk your economic wellbeing and financial stability. Not ensure it. You will find that the consensus in the financial community tends to be that short-term installment loans pose fewer risks. Installment loans are repaid in identical payments according to a schedule that is provided in advance.

What makes CreditCube installment loans especially attractive is that they are designed with you in mind. Before you sign, we will work with you to plan a repayment schedule that best suits your ability to repay.

Moreover, should you find yourself able to pay off the remainder of your CreditCube installment loan ahead of schedule you’re free to do so. Unlike typical bank loans, there are no hidden pre-payment fees when you take out a CreditCube online loan.

And then if you ever need to come back and take out a subsequent installment loan, we make it even easier. When you take out your first CreditCube installment loan, we automatically enroll you in the CreditCube Loyalty Program. Membership is free. When you repay a CreditCube online loan, the Loyalty Program rewards you by providing you with a higher loan limit at a lower interest rate.

Payday loans, to take but one example, carry the most risk to your economic wellbeing and financial stability posed by any short-term loan. That’s because they usually oblige you to repay the principal and interest in one lump sum on your next payday. That means that you’ll have to find a way to come up with more money in between those two paydays than you would otherwise receive in your next salary. This is why payday loans quickly become addictive, forcing you to take out one after the other just to repay the previous one.

Should you ask your bank for a short-term loan, you will in all likelihood be told to take out an overdraft loan, since it entails a minimum of paperwork. Don’t let that entice you. An overdraft loan can potentially become the most profitable alternative for the bank. In most instances, as long as you keep paying the fees on an overdraft loan you can delay repaying the principal. On the one hand, that may be reassuring if your finances are tight. On the other hand, delaying paying back the principal on an overdraft loan can also become addictive and easily compromise your economic wellbeing and financial stability. The bank won’t object, since it will be making a bigger profit off of you the longer you’re in overdraft. That’s because the longer the principal is ignored, overdraft fees − which are already the highest in the market − will accumulate and reach unaffordable percentages, sometimes as high as 1,000%. If you have put up collateral to obtain an overdraft loan, you stand a real risk of forfeiting it under those circumstances.

Even before you reach that stage, your credit rating and credit score might be affected. As a result, you may find it impossible under those circumstances to obtain another bank loan anywhere else, not to mention a credit card, mortgage or other long-term obligation.