High Rate Loans

Payday lending is a form of short-term lending without collateral to people with little or no liquidity, or a bad credit rating. Pay Day is a generic term. Companies in this form of lending go by other names, such as Cash and Go, Advance Pay, Loan Up and Cash Carry. Sometimes these are also called Accommodation Loans or Instant Cash.

Whatever the name, here is a statistic to show how prevalent they have become in a few short years (probably last ten years) in the US. There are some 22,000 companies in Pay Day business, making $40 billion in loans and collecting $6 billion in interest and fees. This number may already be dated, since more companies are coming on line.

REASON FOR PAY DAY POPULARITY

Here are the reasons:

As a business model, it is proven to be resilient and profitable. Diverse portfolio, small exposure, short term nature of the loan and catering to a sector few traditional lenders touch.
With Americans’ incomes not keeping pace with inflation, and increasing illegal immigration, there is growing need for Payday type loans as more and more people live from paycheck to paycheck.
While there is State level regulation on Payday practices, this form of lending is highly unregulated and as yet unchecked in any real form by Federal government. And State supervision is spotty. So no wonder new Payday type lenders are cropping up all over.
Because of small loans and not much oversight, entry barriers are low.

PROS AND CONS

Pros:

Easy terms, no collateral
Negative credit history is not an obstacle
Very local
Caters to a segment of population which has no other alternatives to cover their expenditures or budgets

Cons:

Very high rates of interest (although many States have Usury laws, so Payday lenders skirt it by calling these “fees” or “service charges”
Addictive. Since money is easily available, there is less incentive to save and forgo certain expenditures
Does not improve borrower’s credit history–whereas getting credit from a traditional source, even a store, and paying it down regularly will actually improve your credit rating and open up other doors to borrowing

WAYS TO AVOID PAYDAY

Get in the habit of budgeting your income and expenses and do it conservatively. This will help you manage your cash flow and enable you to predict it—that way you can find ways to either boost your income or reduce expenses. It also will help you to prioritize your expenses
Diligently note down your expenses
Try to put internal limits on when to use a credit card. I advised someone to not use a credit card for single-shop charges below $25. It is amazing how quickly she realized money was flowing through her hands. She never appreciated this when flashing credit cards, and making minimum payments.
Pay off all or most of credit card balance each month. Credit card companies are only a slightly softer version of Payday lenders.
I prefer loan from a friend or from family although I realize it is not always possible
Treat Payday as the absolute last resort, before bankruptcy. That will help you strengthen your resolve to avoid them as long as possible
Get Credit Counseling. Like someone who wants to lose weight must seek professional help, if you are unable to balance your checkbook, you need to see a professional financial advisor.
See if you have an asset that can be monetized. It may be jewelry you do not use or a house bigger than you can afford. This is the absolute first step to repairing your financial health.

What Are the True Benefits of Logbook Loans?

Logbook loans aren’t an entirely new creation; however, the popularity of this form of borrowing has increased hugely during the past few years. There are a number of potential reasons for this boom in applications, most of which can be traced back to the difficult financial climate that we now find ourselves in and the availability of online lenders.

There are numerous people who are unable to get any kind of credit because of their bad credit history for no fault of their own. The truth is that there are numerous people who have bad credit history. The good news however is that even if you are person who has a less than appealing credit history, there are still numerous ways by which you will be able to get credit. One of those ways is by going for the logbook loans. These loans are basically loans which will require security or collateral. The logbooks are generally V5 registration forms which the owner of an automobile is supposed to have. The logbook will have information like the registration marks, engine number, VIN number, car model and other such pertinent information.

The logbook loans are basically loans given to the owner of the automobile against the logbook of the automobile. The lender of the money will keep the logbook as collateral until the complete loan amount is repaid. The person who makes use of the logbook loans will have to surrender the legal ownership of the automobile to the lender where as the use owner ship of the vehicle will rest with the actual owner of the vehicle. In these loans, the owners will be able to get secured loans by providing the collateral.

The best thing about the logbook loans is that even if you have a bad credit, you will be eligible to get these loans. Even CCJs, defaults, arrears, late payments and IVA cases will not make you ineligible for the logbook loans. Even if you have declared bankruptcy, you will be able to apply for these loans by just submitting the logbook.

There are numerous places from where you will be able to get these logbook loans. You can try out in some of the banks and other financial institutions for these loans. You can also apply for these loans online as there are numerous online money lenders who offer logbook loans to the people. You will just have to fill in a simple form which will include a bit of personal information and your credit history will not even come into the picture. You can even check out numerous lenders who are present on the Internet.

You will be able to get the logbook loans very easily and the best thing is that the loan terms are rather flexible and you will be able to get a deal which will work out really good for you.

Logbook loans are suitable for any purpose, and unlike many bank loans which do not allow them to be used for paying off debts, logbook loans can be used to pay off other lenders in order to reduce your interest rate and get your finances in order.Typical uses of logbook loans are gaining the money to put a deposit down on a house or flat to rent, paying off other loans and replacing household essentials that are no longer working. But they are not limited to these uses and whatever your purpose there is a product to suit your need available.