When we talk about debt, we are referring to all sorts of debts, including quick payday loans debt. Whatever is the case, you owe money to somebody and you need to deal with it. When it comes to debt, student loan debt, personal loan debt etc. come to our minds quickly. If you compare different types of debts you will know more about them. This is important as it will give you a clear idea about which debt requires your immediate attention. Though all debts are important some debts need to be prioritized. These days, people prefer quick payday loans since such loans offer them money when they most need it. Unlike traditional bank loans, you don’t have to wait for weeks to get an approval. Also, they will approve your loan request, even when you have a bad credit. However, you need to watch out for the debt as you might have a tendency to delay your payment. Irrespective of the amount, all debts and debts and you need to approach all of them with the same seriousness. Let’s do a comparison of different debts below.
Let’s learn more about mortgage debt and how it differs from payday loan debt.
- Here we are talking about the type of loan where you have shown a piece of property of real estate as collateral.
- This property will have a lien placed on it until you pay the money back.
- Such a loan usually comes with Adjustable Rate Mortgages.
- The average repayment term for such loans is usually 15-20 years. But when it comes to quick payday loans you will have to pay off the money on your next payday that usually gives you less than a 30 day gap.
- Unlike mortgage debt, you don’t show any collateral in the case of payday loans. All that you need to submit is the proof of regular income.
Now let’s take a look at the case of auto loan below.
- In this type of loan, you will be taking money for buying a vehicle.
- You will be paying back the money within 24-60 months.
- The interest rate is going to be fixed here. But when it comes to payday loans you might have to pay higher interest if you delay the payment. You will also have to pay late fees as well. But these kinds of things can vary from lender to lender.
- Both auto loan and payday loan require you to submit proof of regular income.
Here we are talking about short-term loans that are temporary. You go for payday loans when you need money urgently. You need money to deal with an unexpected expense. You don’t need to show any collateral here as these loans are unsecured. Also, your bad credit history will have no significance here, unlike regular bank loans. You will be required to pay off the money on the day of your next pay check.
You take student loan to help you with the cost of your education. People prefer student loans for higher education. Usually the repayment period is 10 years.