When you are running out of finance options for meeting emergency payments, you may consider payday loans or workplace loans. Payday loans are available to anyone who has a steady income, regardless of credit history. Workplace loans are available at a place of employment for employees who need fast cash. Here are factors to consider about these two types of loans.
The advantage of payday loans is that there are hundreds of lenders to choose from either on a regional or national level. The process is very quick and allows you to maintain your privacy. As long as you repay the loan when it is due, interest and fees may not be much of a factor.
If you wait too long, however, you may end up trapped in debt. But if you have predictable income that allows you to make strict budgeting decisions, payday loans online or cash advances can be much more effective in resolving financial issues.
The availability of workplace loans has expanded in recent years according to the Wall Street Journal. Since the loans are available through the employer, they can be paid with paychecks or other options.
Sonic Drive-In restaurants in Phoenix, is an example of a company that offers these loans, which can be from $150 to $500 for two weeks. Workplace loans are considered by the employer to be positive, since they can help the majority of employees who live paycheck to paycheck.
Which is better?
Interest and other factors should be considered when choosing between payday loans and workplace loans. Some employers do not require fees for these loans, but many employers simply offer the equivalent of payday loans with higher rates through third party lenders. It’s important to have a clear understanding of the terms, regardless of loan type.
Workplace plans can be set up so that money is withdrawn directly from your paycheck. The main risk of taking workplace loans is that they can become expensive in the long run. Payday loans are required by federal law to disclose all terms pertaining to fees. In most of the cases, payday loans will provide more flexibility; hence, they are considered to be a better option.