If you need money fast, there are a variety of ways you can do it. Different loans are available for every situation imaginable; but in this post we’re going to concentrate on logbook loans vs payday loans. Both are popular options when it comes to loaning money, but which one is right for you? Read on to find out:
If you can’t get a loan elsewhere, whether that’s because of a bad credit rating, a history of missing payments, or something else entirely; a logbook loan or a payday loan could be the right way to go for you.
To put it simply, logbook loans let you borrow money as long as you put your car down as collateral. The amount you borrow is decided by the value of your car, so it’s a good option if you need a larger amount of money. There’s some FAQs on logbook loans here.
Obviously, you need to be sure that you can keep up with the repayments or your car might be at risk. You should think carefully when getting this type of loan!
Another good money lending options if you have bad credit. There are so many payday lenders out there, that you’ll probably be spoilt for choice when it comes to using one.
With this kind of loan, you probably won’t be able to borrow as much money as you would if you were to put your car down as collateral, however; you can usually borrow an amount of up to £1000, to pay back on your next pay day.
This means that a pay day loan is a good choice if you have bills to pay or an emergency repair to be done ASAP, and then once you get your monthly wage you can pay back the money.
To some it may seem like an advantage, but a disadvantage of payday loans is that they will approve almost anyone in no time at all, and the money will be in a persons account in minutes. This can mean people start to get dependant on these loans, and end up in quite a bit of debt because of it.
You could even have to face debt collectors at your door if you fail to pay back the money you owe!
Which Option is Right For You?
If your car has some value and you need to borrow more than £1000, a logbook loan could be the way to go for you. However, you should still only do this if you know you will definitely have the funds to pay the loan back within the agreed time!
If you only need a small amount of money to keep you going until your next pay day, then a payday loan is probably the right choice.
Whichever loan you decide to take out, you need to be 100% sure that you can pay the money back, otherwise you could end up in a lot more debt than you first envisioned!