Is a personal loan preferable to staff loans?
Thursday September 18, 2008
Staff loans can have their advantages, but they will tie your finances intimately to the company you work for. Even if they are offering better interest rates than banks are offering, staff loans can bring a host of problems and may cause you to feel trapped in your job when there are better opportunities with other companies. Also, as many staff loans are deducted directly from your salary, you may find you are unable to benefit from financial plans where you delay payments for as long as possible in order to reduce the interest payable on other loans that are not staff loans.