Do you need an extra bit of cash to make your finances run smoothly? Wondering whether to pawn or go for a payday loan? Let us help you out by describing the basic difference between a pawn and payday loan. Let us talk about which of these two is more reliable and should be used by you.
We have all encountered situations in our lives when we could use a little injection of cash in our everyday life to make things work. Sometimes, you encounter an unexpected expense which will need to be met. But when you do that, it really stretches you short, and it becomes difficult to pay bills and run the household. This is one of the many situations when taking a short-term loan is a good idea.
You have some old stuff lying in your home, like an old TV or guitar or some other item of monetary value that you don’t use anymore. You can pawn it off to get some handy cash and make ends meet. The good thing about pawn loans is that they offer you the chance to get money in exchange for goods at virtually no risk to you at all! How come? Because all you are doing is getting money for the estimated value of the goods you submit as collateral. What’s more is that you can get your item back by repaying your lender, so the risk is as little as it can be.
A Payday loan is a loan where you are given a certain sum of money against the amount of your paycheck. If you don’t have the paycheck to show, then you can’t get the loan. Also, you need to be in continued employment in order to avail the loan. One more important thing about payday loans is that they have a shorter term as compared to pawn loans. So as soon as you get your salary, you will need to pay your lender with interest.
Which is better?
In our experience, pawn loans work better because they provide minimum risk to both parties. The period of a pawn loan is usually 4 months, which can also be extended in case the borrower needs more time. Also, the borrower has the option of surrendering his/her collateral and thereby making the final payment. So it is easier for everyone. Payday loans require you to have a steady cash flow at the end of each month to make you a viable loan recipient. Also, the charges on payday loans are much higher; so unless you have nothing to pawn or need a very large cash loan, payday loans are not recommended.
Do you need some quick cash? Or are you looking to get some fine jewelry for an upcoming event? Come to Loudoun Exchange and Jewelry in Leesburg, Virginia and resolve all your loan needs. Sell your gold, jewelry, valuable items and almost all goods to us and get loans in exchange. Visit us and have your money troubles solved with ease.