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r-ruslan [8.4K]
3 years ago
12

Mateo is a pizza delivery driver and is paid by the hour. He was forced to take two weeks off of work due to a serious illness a

nd cannot afford his rent. He owns his car, but has no other significant assets. Should he seek a loan from a payday loan company or a title pawn lender? Why?

Social Studies
2 answers:
kap26 [50]3 years ago
6 0

Answer:

Option #3

Explanation:

I just took the test

Gennadij [26K]3 years ago
3 0

Answer: He should go to a payday loan company because he would have to put up his car as collateral and risk losing it at a title pawn lender.

Explanation: Payday loan company offers unsecured loans meaning they give out loans without a collateral since the payment of the loan is tied to the paycheck of the borrower. That means the paycheck stands as a collateral for the loan.

With a title Pawn lender Mateo has to use his car as a collateral and risk losing it if he doesn't meet payment deadline.

In conclusion, it is best to acquire loan from a payday loan company as arrangements can be made on payments and he will still have enough money to live on while paying the loan.

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