Flex-Pay Loans: An Alternative That Helps

To think you’ll glide through life without any financial assistance is both optimistic and unrealistic. Short and long term debt is an inevitable reality for most Texans. Market conditions, inflation, and poor employment opportunities make it difficult to be prepared when unexpected bills and repairs occur. Sometimes, a small dollar loan is a necessary addition to your budget if you expect to pay for these things on time. Unfortunately, the very same product that’s meant to help you cover new responsibilities can end up harming your finances in the long run.

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Short term loans requiring repayment by your next paycheck can do more damage than you think. Though they don’t typically exceed $1,000, the principal isn’t all that you have to repay. You’re also responsible for the lender’s fees, rates, and interest as it’s applied over your term, all of which is due by the time of your next paycheck. Their combined sum may be too much to cover with only one paycheck, especially if most of your pay is tied up with your usual household expenses.

This is how the choice to search out financial assistance comes with a certain kind of stigma. When the majority of people agree to terms they can’t abide, they fall into a cycle of overdue payments and late fees, sinking deeper into debt with each missed due date. But not all financial assistance is the same; there are small dollar loans that don’t adhere to these restrictive repayment plans. Installment or flex-pay loans offer flexibility for those who need more time to pay back $1,000.

The best options for cash installment loans come from a CAB, which stands for a Credit Access Business. These organizations arrange small dollar loans through unaffiliated third-party lenders, and they take over the remaining servicing of these products. As a result, they can offer a different repayment program that eases the burden off the average borrower in Texas. These loans are repaid in smaller installments that don’t put as much strain on your monthly budget stretched over a longer period of time.

To make sure your CAB is working as hard for you as possible, you need to ensure it has all of the necessary licenses as provided by your state’s government. The State of Texas regulates these businesses by certifying only those that meet their legal requirements. If they lack the license of CAB or CSO (Credit Services Organization) then they do not adhere to lending laws in Texas. It’s therefore crucial for you to confirm these accreditations before you contact a CAB for help.

Seeking out financial assistance shouldn’t be shameful or stressful. In reality, people all over Texas (and indeed the entire country) use loans as a practical financial tool to meet their goals. The key is to find those financial institutions that can offer you a healthy way to pay for your obligations. A CAB that can arrange an installment loan is just one of those ways.