How a Payroll Loan Can Help Reduce Debt
Those in debt need to be very careful: prevent them from rising. And certainly one of the solutions to this (and the most appropriate one too) is to be able to remedy the most expensive debts you have.
But where to start? Is it really possible to go from one high debt to another debt without compromising one’s own pocket?
Today we will give you some tips on how to help your employees reduce their debt through payroll loans. Check-out!
1. How to use payroll loans to pay higher debts
Many people end up in high interest debt when trying to get rid of higher debt. And you don’t have to be a PhD on the subject to understand that the famous snowball effect creates even greater backlogs, leading many people into debt that often gets out of hand.
While this is a big reason to worry, you need to look at the problem very calmly, so you can make the best decision and solve issues.
Is it possible to pay very high debts without even having money available for it? Yes there is. And the best way is certainly through payroll loan.
Commonly, larger debts are allied with very high interest rates, which end up compromising the worker’s budget for a much longer time. And money will surely pay less and less.
Several finance experts recommend payroll loans, especially to pay off or reduce very high debts. When it is used correctly, it is the best way out for those who need money and do not want to fall into the clutches of overdraft.
Payroll loan is the type of loan that has the lowest interest rates in the market compared to different types of loan and credit lines. The interest rate difference can reach more than 300% per year between the types of credit and the payroll loan. Obviously, payroll loan is the best way out.
2. How to teach your employees how to prioritize debt reduction
It’s very simple. Just start with a basic rule: The longer you keep your debt suspended or better, with no payment, the higher the amount to be paid in the future.
Presenting the alternatives that your employee has to have priority in paying these debts. Also make and demonstrate a comparison of the interest rates available on the market. The employee will see that this is the cheapest option to pay off or reduce their debts and make their money pay more monthly.
Try to make him / her understand that it is necessary to pay the highest pending issues such as: credit card, overdraft, installments of other loans, tuition, water bill, telephone, electricity and so on.
But be sure to show that it is not the highest value that will be the most important. One should check which interest rate is higher for the time of your debt. Also explain that through payroll-deductible loans, the employee will bear lower interest rates, fixed repayments, and much longer terms to repay or reduce their debt.
At our lending company it is very easy for you to apply for a payroll loan to pay off your debts, as the whole process is online and does not burden the HR area. Register your company. If you have any further questions, please contact our consultants and we will be happy to speak with you.