If you have ever found yourself in a dire financial situation, you may have been tempted to take desperate measures in order to rectify things. Everywhere we turn these days there seems to be a “bad credit lender” trying to push cash in our direction to remedy our problems. Whether its payday or logbook loans that you are interested in, these companies all seem to promise exactly what we are looking for when we need a financial helping hand in a hurry.
The Problem with PayDay Loans
Of course if you stop to think about it you realize very quickly that these companies are offering something they can’t deliver. Sure they will get some cash to you very quickly and you might temporarily be able to get some rest from whatever is bothering you. The problem is that products like payday loans will leave you owning a whole lot more money than you might realize and in a worse state than when you started.
Fast Cash Loans
Payday advance lenders work by giving you a fast cash loan for a very short period of time, usually until your next paycheck is delivered. The problem is that you will have to pay back at least $20 for every $100 you borrow. This may not sound all that bad but if you are already running short of cash you are going to find you are in an even worse state next month after you have repaid your debts.
Logbook Loans
Logbook loans work in much the same way except that the interest rates are lower, although they are generally taken out over a much longer term so you still end up paying back far more than you have taken out. Plus, with logbook loans you have to use your car as collateral which means you will lose it if you fail to meet your repayment dates.
These instant bad credit loans lenders charge extremely high interest rates that have actually been made illegal in many US states. Although you might be tempted when you have nowhere else to turn, you really would be better off giving these a miss, no matter what your situation.
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