Are Payday Loans Better Than Logbook Loans?

Struggling with debts?

Are you struggling to make ends meet at the moment, because I was in exactly the same position about 12 months ago when I had to take a large pay cut at work. Things got so bad that I was finding it difficult to pay bills and was considering using a variety of loan products to try and get me through to my next pay day.

Are Payday Loans Worth It?

I had already considered Payday loans, but after a researching online, I quickly realised that these loans were no all they cracked up to be with their high rates. Although they looked appealing, i.e. you could get your hands on some fast cash in less than a day, and you pay it back on you’re next pay day. Seems like a great idea until you start to think about it seriously.

Fact remains that if you are having a tough time right now, things may get even worse next month, so you can only imagine how bad things will be next month when you have even less cash because you have to pay off your payday loan. Also, when you consider that Payday loan interest rates and fees are really quite high, you are effectively repaying much more than you borrow.

What's The Big Deal?

So I decided to give Payday Loans a miss and instead looked at logbook loans UK, which seemed similar except for the fact that you have a longer period to repay the loan. The main difference is that you need to put your car logbook down as security on these loans, and if you fail to keep up with your repayments, then you may well end up losing your vehicle to pay for your debts. Interest rates are also a little lower that Payday loans, so you will be slightly better off than with a Payday loan, but the fact that the loan period is over a longer period means you are still going to be repaying much more than you borrow.

However, upon further investigation, I found out that I could pay off a logbook loan earlier without being charged anything extra. It’s amazing how much money we could save each month, without realising it.

For anyone who’s currently in financial difficulties, I’d suggest sitting down and work out all those luxury items you buy each month that you don’t really need. You might be surprised at how much cash you can save each month. For more information about loans, see Logbook loans.