In times of financial instability, many people need to resort to loans to pay the bills. Or, they decide to borrow money for purchases, travel, and other purposes.
There are various types of loans in the financial market.
Which one is right for you? Payroll, secured or credited?
Are you interested in the payroll loan but don’t think you understand it right? Not sure about something? Doubts are part, it is important to know some details that make all the difference. Learn All About Payroll Loan: And Payroll Loan what it is, who can take it, and strategies for not getting it wrong.
Before answering which loan mode is best, check out what each one means:
– Payroll loan
It is a loan whose debt installments are directly discounted from a person’s payroll. It can be requested at banks or financial institutions.
This type of loan can only be made by those who are registered in the portfolio and through entities that have an agreement with the company in which the person works.
– Secured Loan
Loan where the person usually offers a vehicle or property as a guarantee that the installments will be properly paid off. For this to be done correctly and consciously, you need to be careful, such as making sure you are not in default, for example.
It is a loan that resembles personal loans. The person takes a value for himself and the installments must be paid via bank slip, debit or postdated checks.
Check out the advantages and disadvantages of each type of loan.
Which is the best loan: Payroll, secured or credited?
All of these loan arrangements have advantages and disadvantages. So you need to research and be careful to choose any of them.
– Payroll loan: The advantage of this modality is that it usually has an attractive interest rate because it is directly discounted from the time sheet – so the risk of a person not paying is almost nil.
The disadvantage is that the amounts offered are limited and you have part of your salary committed as soon as you receive it.
– Secured loan: The main advantages are the ease of getting this type of credit and the high values that one can borrow.
The downside is that the lending institution may claim your property as collateral if you get tight and don’t pay the installments.
– Credit: The advantage is that you pay the installments, usually via bank slip – which allows greater financial control.
The disadvantage is that the amounts that can be borrowed are limited to low amounts.
Thus, there is no way to define which is the best. It will all depend on your availability and what value you need.
Tips for Making a Loan
Here are some suggestions so you don’t get complicated with your finances and stop repaying your credit:
– Calculate your monthly expenses to find out how much you can afford to pay for a loan.
– Set the loan objective to know exactly how you will use the borrowed money;
– Research interest charged at various institutions to find out which rates are lower;
– Always plan days in advance to pay the installments, not to be late or without money to pay them;
– Read the contract carefully before signing it;
– Do not use the borrowed money for purposes other than the one that motivated the granting of credit;
– Never commit more than 30% of your income with a loan.