According to loan researcher Ariel Pryor, “This 2012 shows no signs of any major improvement in the U.S. economy, so the trend will likely accelerate into 2012.” People still experience financial difficulties. Many experts speculate that there will still be an increase in borrowing including installment loans for bad credit.
According to a report by ReallyBadCreditOffers.com, a leading source of information about personal loans since 2005, there will be a 40% increase in borrowing including installment loans for bad credit in 2012. This prediction was based on the increase in demand in 2011.
Another factor that affects the increase in borrowing of installment loans for bad credit this 2012 is the widespread problems of most banks and traditional lenders. So people who cannot qualify with traditional financial institutions will probably turn to lenders of installment loans for bad credit. These lenders offer easy to comply with requirements and fast approval.
Furthermore, bad credit scores hinder many consumers the ability to get a loan to pay off their emergency household bills, consolidate credit card balances, or pay for urgent financial emergencies. So, lenders who offer installment loans with bad credit scores may be your savior. In fact, ReallyBadCreditOffers.com estimated that in 2012 credit card balances will be consolidated and resolved in the first 6 months of the year because debt consolidation loans will be offered along with installment loans for bad credit.
Some financial experts believe that, “there will be signs of considerable increase in interest rates on loans towards the end of this 2012.” With this in mind, many consumers will be affected, especially those with bad credit. When or if this happens, it will be more difficult getting over accumulated debt and rebuilding bad credit among borrowers of installment loans.
However, Pryor stated he is optimistic regarding this possible dilemma for consumers of installment loans for bad credit. He said that, “Responsibility when borrowing is vital as part of your financial strategy. These loans should be used as part of an overall plan to save you money and rebuild.” Some previous surveys, found that about 30% who applied for loans were approved. “It is my firm belief, that consumers have a golden opportunity to get out of debt while repairing their credit, locking in rates that seem destined to rise dramatically in the near future,” added Pryor.
Installment loans for bad credit will be a helpful financial resource for people in 2012. Consumers of these loans must remember that if they plan to consolidate there borrowing, they must also commit to a repayment schedule to avoid being trapped in debt.