Payday Loans vs. Pawnshop Loans

       These days many people find themselves in difficult financial situations where they think they have to take drastic measures, such as taking out a pawnshop
loan. Another option they have to consider is payday loans. They may find that they do not have the funds to get repairs on their car or house, or they may even need the money for doctor visits or to pay for medicine they need. While both types of loans are to be used only in emergency situations, one should look
closely at payday loans versus pawnshop loans before deciding which way to go.

        First,one should look at pawnshop loans. Not only does one have to take in their possessions, many of which are of great value to them both emotionally and financially, they run the risk of losing them if they do not pay them back. This can be devastating especially if one finds themselves in another financial bind where they just cannot afford to get their items out of the pawnshop. In addition to running the risk of losing these valuable items, many also have to deal with the fact they are only going to get a small percentage of what their items are actually worth. One may take in a diamond ring that is actually worth $1,000 and only get $200 for it. Lastly, it can be embarrassing for many to have to go through this process. All in all, while it is an option one should really think about all the cons before taking into consideration the only real "pro" about this type of loan and that is getting a small amount of money.

        Payday loans are very different. One does not need to pass a credit check and they will just need to provide their employment information and other basic
information, such as their address. The loans are low interest and not high interest, like many mistakenly think. One benefit of getting one of these loans
versus a payday loan is that one does not have to risk losing their valuables. They just have to look over their budget and determine if they will make enough
money to pay the loan plus the interest back when they get their next paycheck. It is also very convenient and private. Another perk is one may get up to $500
overnight and even more if they leave more time. This is much more than many would receive from pawnshops.

        In conclusion, many agree that while taking out a cash advance loan is not something they want to get in the habit of doing payday after payday, it is a much better alternative to taking out a pawnshop loan where they might lose their belongings and only get a small amount for them.