Sometimes financial advisors can get long-winded and their advice winds-up as just a bunch of blather. No doubt some of the posts here at this site have gone too long when it would've just been a more simple process to say "yes, this is a good lender to use" or "no, you want to stay away from this loan company at all costs" or some other simple, quick message.
That's the point behind this write-up, which is to provide simple methods and tricks to use when you borrow from a tribal loan company. So many consumers get into trouble with these loans so I figured it's time to just lay out some very simple guidelines, rules of thumb, generalities, and basic plans a borrower can utilize in order to get into a tribal loan so that it helps them and then, just as quickly, get out of that same loan so they don't get into a financial mess.
Here are some important rules for borrowers who take out loans with any Native American lender...
1) Try to repay any (or all) of the principal amount of the loan as quickly as humanly possible. This means that a borrower should focus on repayment of the loan instead of frivolous spending. If you are going to spend money at a restaurant or a pizza, or you are going to buy some fancy pair of sneakers or some jewelry, or anything that is not a necessity, then you need to freeze.
Don't buy that unnecessary item when you can take those same funds and put that money towards repaying some (or all) of an outstanding tribal loan. This type of loan is just too expensive for you to be buying fun, frivolous, unneeded, and not a truly necessary product or service.
2) Negotiate with your tribal loan company, whether they are a Native American installment lender or payday lender. In the end these lenders are all run by managers (and underwriters) who are in charge of a group of customer service representatives and/or client manager. Even though the lender offers you a specific interest rate or a specific amount of time for the life cycle of the loan, but that doesn't mean those terms are written in stone.
You can tell the tribal lender that you are willing to take out a loan with them, but you first want some changes written into the loan contract. Now many of these firms will tell you to take the terms or leave them but some (and these days probably many) Native American lenders are willing to adjust the terms of the loan in the hopes that they will procure you as their newest customer.
3) Shop around with a variety of tribal lenders. Understand that there are over 100 tribal loan companies (although that number has been shrinking lately) and there are many different types of loan companies under the Native American lending umbrella. A company like Mobiloans which has a relatively small finance charge when compared to the very high interest rates of a firm like Ameriloan.
A company like Great Plains Lending which offers installment loans that can stretch well over a year in their duration is much different than a lender such as US Fast Cash which expects their money to be repaid about 14 days after the loan is issued.
These are three simple steps for those who borrow from tribal loan companies. Obviously there are other approaches one could take to getting better loan terms, but these three methods will usually help and they can't hurt at all. Make sure to push back in general with the terms that the tribal lenders try to place on you (the borrower) because frankly the terms of these loans are generally quite onerous.
It is your money and you will have to service the loan, so it's up to you to push for a better loan. The tribal loan companies need to be kept 'honest' by their customers, who are willing to negotiate for terms that are closer to reasonable.