New Website Shares Consumers' Positive Borrowing Stories

WASHINGTON, Feb. 10, 2015 /PRNewswire-USNewswire/ -- A new resource for consumers to learn about affordable credit options was launched today by the American Financial Services Association (AFSA).  InstallmentLoansWork.com explains the beneficial features of traditional installment loans and shares the positive stories of real-life borrowers.

"When it comes to borrowing money, Americans experiencing financial distress have limited choices – but traditional installment loans are the safest and most affordable way for them to borrow small-dollar amounts," said Chris Stinebert, president & CEO of the American Financial Services Association. "InstallmentLoansWork.com explains how the product works, what makes them different, and how they can help families build a stable financial future."

Installment lenders work one-on-one with borrowers to determine their ability to repay a loan before making it, and ensure that the proposed monthly payments are affordable. Installment loans are reported to the major credit bureaus, making it possible for borrowers to build or strengthen their credit. And the loan's equal monthly installments allow borrowers to pay off interest and reduce principal each month, creating a roadmap out of debt.

"We believe informing consumers about their loan options will empower them to make smarter financial decisions," Stinebert said. "We hope that by strengthening Americans' understanding of installment loans – what makes them different and how they benefit real people and consumers – lawmakers and regulators will recognize the need to preserve access to this smart lending option."

In addition to explaining what installment loans are and how they work, the site shares the stories of people who have been able to consolidate debt, lower their monthly payments, rehabilitate their low credit scores and get back on track towards financial security. The site also provides tips to help consumers make smart financial choices.

"Regulators tend to lump installment lenders in with payday or title loan lenders, but the truth is, they could not be more different and are a really valuable tool for consumers," said Stinebert. "InstallmentLoansWork.com details what makes TILs different and why they are so important."

Based in Washington, D.C., AFSA (www.afsaonline.org) is the national trade association for the consumer credit industry, protecting access to credit and consumer choice. Its 350 members include consumer and commercial finance companies, vehicle finance/leasing companies, mortgage lenders, credit card issuers, industrial banks and industry suppliers.

Contact: Karen Klugh
202-776-7308

SOURCE American Financial Services Association