Did you know that the average amount of debt that an American has is greater than $90,000? This includes all debt types, including student debt, mortgages, credit card debt, and more. If you’re one of the many Americans with debt, you might be feeling stressed about your financial situation.
This situation can feel even more stressful if you’re suddenly in a position where you need money fast. Fortunately, with a quick loan, you can get the money you need.
But you might be wondering how long it will take you to pay back your quick loan. Fortunately, in this article, we’ll review how long your repayment of a quick loan will take.
Finally, you can get the money you need quickly and pay your loan off fast. Read on to learn more.
Various factors determine how long you will have to pay off your loan. These include the repayment term, what type of loan you get, the principal debt, added fees, the early settlement fee, and the interest rate.
As you can imagine, the repayment term that you agree on with your lender will, in large part, determine how long your repayment term is. You and your lender will put together a schedule you agree to before you get the loan, after which you’ll be expected to follow it.
Of course, your repayment term may change depending on whether you’re able to pay your loan off in time.
One of the most important factors that have an impact on how long your quick loan repayment will take is what type of loan your loan is. Different loan types work differently and have different terms when it comes to how you repay them.
When you get a short-term loan, you’re usually getting a loan that covers an unexpected, small expense. Expenses that count for this category might include the cost of a doctor’s bill after you’ve had an unexpected injury or that of a car repair after an unexpected car issue or accident.
In addition to the loan usually being smaller than another loan type, it usually has an interest rate that’s on the higher end. As for the loan term, it’s less than a year.
A long-term loan is one that you usually use, so you can pay for a larger expense. The expenses you pay with this type of loan might include the capital you use for starting a business of your own or a huge hospital bill. The interest rate for these loans is usually lower than for short-term loans.
As for the repayments, these might take place over years instead of months.
When you get a revolving loan, you’re getting access to credit that’s ongoing. For example, you might first take a loan of a certain amount out. You might pay that loan out over some time and finish paying for part of it.
However, instead of being finished with the loan, you’ll then get another amount that was the same as the first.
This will occur automatically. The idea is that you won’t have to reapply to get this amount of money again. Because the loan revolves and you’re constantly getting it again, the repayment period varies significantly.
If a revolving loan sounds familiar, that’s because it’s incredibly common. The most common type of revolving loan is a credit card.
If you get a consolidation loan, you’ll be consolidating the different types of debt you have into one singular loan. Usually, these loans have a lower interest rate, and you pay them off over a longer period. This way, the minimum payment for each month won’t be too much—and will be affordable to you.
As a result, you’ll be able to slowly pay off your debts instead of feeling overwhelmed by a large monthly payment and ending up in debt again.
In addition to the loan type, there are other elements of the loan that will have an impact on the length of the repayment period. One of these is the principal debt. This is the figure that you originally borrowed from the lender and agree to pay back (excluding interest and/or fees).
If you get a larger amount of money, chances are that your principal debt will take longer to pay off. However, this will depend on some of the other factors we review here.
Even though most of what you’ll have to pay will be made up of the principal debt, you should also consider the added fees. If the fees end up making the loan expensive to the point where it takes you longer to pay it off, this will make the repayment period longer.
There are various fees you may have to pay when you’re getting a loan. Add them all up before getting your loan to figure out how long you think it will take you to pay it off, along with fees and interest.
The application fee you would pay for a loan is what the lender would have you pay so that they can administer your application. This means that you’re either directly paying the consultant who helps you with your loan application or you’re helping to pay for the software that does.
Another fee you might have to pay when applying for a loan is the processing fee. This will cover the processing of your loan and the related costs. For example, when the lender completes the process of putting the loan money in your bank account, this would cover that cost.
The origination fee is one that you pay to secure the loan. This is a fee that’s most common when you’re getting a mortgage, however. So you might not come across this fee if you’re applying for a quick loan that isn’t for a mortgage.
Another fee you might have to pay when getting a loan is the annual fee. This is a fee that you have to pay the lender every year. Note that this type of fee is most common when you’re getting loans by using a credit card.
This isn’t a fee that you’ll pay before you get your loan—and you hopefully won’t have to ever. However, it’s still worth considering the late fee when thinking about how long it will take you to pay off your loan. If you’re already behind, how much would the late fee set you back?
Keep in mind that, if you’re charged a late fee, there will be quite a lot you will have to pay.
In addition to paying this fee the next time you pay, you’ll also have to pay for the outstanding amount from the month before. You’ll also have to pay twice as much of the interest amount.
Consider all this when you’re thinking about how much paying a late fee might set you back.
When you’re deciding which loan to get, you should be aware of which fees you’ll have to pay for each different option. This way, you’ll have an idea of how much you’ll end up paying in total for both getting the loan and paying it back with interest.
Then, you can decide which of the loan repayment plans is best for you based on various factors, including fees.
You’ll be able to find out what many of the fees are, usually in the loan’s disclosed APR. Fees you might find in the disclosed APR include the origination, processing, and application fees.
Other fees wouldn’t be included in it because they are fees that would be applied only if you weren’t abiding by the loan agreement. These might include fees such as prepayment or late fees.
Even though this is a type of fee you might have to pay in the situation in which you pay your loan off early, we’ve made this its own category because it will have an impact, potentially, on what repayment term you’ll agree on with your lender in the first place.
For example, if the early settlement fee is extraordinarily high, you might decide to choose a slightly shorter turnaround time for how long it takes you to pay off your loan.
On the other hand, if it isn’t too high, then it will give you less of a reason to choose a shorter amount of time to pay off your loan. In this case, you might still choose a longer amount of time to pay your loan off.
Additionally, choosing a loan because of its low early settlement fee might mean that, in the back of your mind, you’re aware of the fact that your loan might take less time to pay off than what you’re planning for.
The interest rate you end up getting when you have your loan application accepted will also have an impact on how long it takes you to pay off your loan. After all, if you have to pay more in interest, this might impact how much you’re able to afford to pay off each month.
If the amount you can afford to pay off each month is lower, then it will take you longer to pay your loan off.
The interest rate itself is determined in part by your credit score. The higher your credit score, the lower your interest rate will be. The lower your credit score, the higher your interest rate will be.
If you want to pay your loan off faster, therefore, and you’re worried about your interest rate impacting that, we recommend that you improve your credit score before applying for a loan.
Unexpected circumstances can also have an impact on how long it takes you to pay off your loan. However, they don’t determine the length of your loan from the start. Instead, they change the length of your loan repayment after you’ve already decided on how long it will take you to pay it off.
Unexpected circumstances might include a higher cost of living, for example, which many Americans are now experiencing. Other unexpected circumstances include a job loss, an unexpected expense, a divorce, and so on.
When these unexpected circumstances strike, they usually mean that you won’t be able to pay off your loan the way you expected to. In this case, you should speak with your lender to discuss different options.
If you explain that your circumstances have changed unexpectedly—and you go into the specifics of how they have changed—your lender might be open to coming up with a solution that works for both of you.
Were this to occur, the amount of time it would take you to pay off your loan might change. But what if your lender doesn’t agree?
Fortunately, you still have an option in this case: you can get a consolidation loan. And the good news is that you might get a lower interest rate than your original loan. This could happen if you were paying your loans off on time for your original loan, and as a result, your credit score improved.
In this case, chances would be that the interest rate for the new consolidation loan would be lower than the interest rate you were originally paying for the original loan.
Now that you’ve learned about how long a quick loan might take to pay back and what factors can have an impact on both the length you decide on and how long it might take to pay back unexpectedly, you might want to get a quick loan.
In this case, you should look further than FastLoanDirect. At FastLoanDirect, we have fast loans that are quick and easy to apply for.
You can get your funds overnight! To get the money you need, apply for a loan today.