Recently, JG Wentworth has been doing a ridiculous amount of advertising that focuses on ‘When you need cash now’. They are hoping you will dip into your retirement fund of your IRA and pay back huge interest.
The cost to take out one of these loans is pretty astronomical and you are also leveraging against your future by taking money out of your 401K. If you take money out of your 401K and do not put it toward an asset, the government actually taxes you on the loan. So you not only are paying a fee for the loan but also paying taxes to the government.
When looking to get cash quickly, a payday loan may be a better option than a loan from your retirement. There are low interest options available to those that are looking for small loans anywhere from $100 to $1500. These loans can be deposited into your bank account fairly quickly and you do not have to pay taxes on your loan. All you need to do is pay a small amount of interest when you pay your loan back to the loan lending company.
There are multiple options you can pick from when you need cash now, but you need to figure out what the best option is. If you want to make sure you can get money quickly a low interest payday loans may be the best option for you. If you can get a loan from a friend and not have to pay any interest back than maybe that is your best option.
It is important to make sure you know exactly what you are getting into when you get a quick cash loan. Some of them can be scams, so make sure you do your research.