The difference between a payday loan and an installment loan is significant and a distinction any borrower should familiarize themselves with. The definition of an installment loan is quite simple. It is a loan that is repaid over time with a set number of scheduled payments along with a negotiated interest rate. Now a payday loan is normally a smaller amount of money borrowed at an extremely high rate of interest where the lender requires that it will be repaid when the borrower receives their next paycheck. If borrower does not repay on the date of his next paycheck, then the payday lender can impose fines and penalties.
This article was motivated by the super high number of people flowing in and out of Sun Loan across the street from the Circle J Barbecue on Sudderth in Ruidoso, NM during fourth of July Holiday. As you can see in the picture below, a Hispanic woman was rushing out of the store to her car where she had apparently forgotten something she needed for the loan application. Her daughter had entered USA Nails located adjacent to the high interest rate lender.
While we were enjoying our delicious meal, we counted no fewer than 10 individuals or families marching in and out and surmised most were probably paying off high interest installment loans. In a casino town with Inn of the Mountain Gods, we pondered the possibility of many paying off foolishly accumulated gambling debt.
Researching Sun Loan online revealed very few fraud or scam reports, so they appear to be a reputable lender even publishing video testimonials from what appear to be satisfied customers like J. Infante of McAllen,TX. Mr Infante chose not to indicate the name the initial J stood for. Found a Juan, Jorge, Jaime, Josefina, Julio, Jesus, Jose, Juana. Infante’s video was in Spanish and the gentleman with some acting ability mentioned the application process was Super Facil never mentioning how much the interest rate was.
I wonder of J. Infante or K. Fulkerson of West Plains, MO got a reduced interest rate on their loan in return for pitching or helping Sun Loan promote their loans?