In times like these its always helpful to have a close friend who can help us out but we may be embarrassed to ask for a loan yet again, or maybe they have problems just as we do. When that happens we are going to have to go elsewhere, usually to a professional lender who deals with bad credit loans.

There are a few options open to you when you get to this stage although the regular options such as visit to the high street bank is going to be out, as they won’t be able to provide the cash fast enough and will have stricter standards about who they lend to. Especially in this day and age, it can be difficult to get the cash from the high street banks unless you have an immaculate credit rating.

So if you have a patchy financial past you will need to find other means but they are readily available if you are willing to look just a little under the surface. Online might be the best place to start your search for an instant cash loan, and although getting your cash in an instant is unlikely, you could certainly be able to find a lender willing to hand over the cash in under 24 hours.

The payday loan is the most well known of the products you are likely to secure. They are an unsecured loan for people with bad credit and they are very easy to take out as long as you have a bank account and a regular income. You will be able to get a loan for anything from £100 up to about £1500 but you will have to repay the total amount when you get your next paycheck within the month. Failure to pay back your debts on time will mean big extra charges on top of your already high repayments.

And this is the major problem with payday loans and their high interest rates, you will end up paying back much more than you take out, even if you repay on time. The same can be said of logbook loans which work in a similar manner except for a few major differences. This is also a bad credit loan but this is a secured loan in which you use you car as collateral, but they have the same problems with high interest rates and if you don’t keep up with your repayments this time you are going to lose your car.

The reality of instant cash loans for people with bad credit is that you are going to pay dearly for using them and they are best avoided at all costs. Only if you are unlucky enough to get into a situation where you must absolutely get cash in an instant but have nowhere to get it from should you even think about making use of these products. Whatever you do, ensure that you have the cash available to repay your debts on time, without fail.

Log book loans interest rates tend to be pretty standard throughout the industry and sit at around 430% which if you are unfamiliar with loans in general, will probably not mean all that much to you. Let’s put it this way if you are in desperate need of cash and decide to use the services of a car title loans company and take out an 18 month loan for the amount £1500 how much do you think you would have to pay back over the loan period to get rid of your debt? The answer is over £4000, and that doesn’t include any of the charges which may be levied for late payments or the fact that your car could be taken off you if you default on the loan.

What about loans from the banks?

Obviously people make use of log book loans because they can’t get access to money from the high street banks but how much would a £1500 loan from one of these institutions cost? Its not unreasonable to find a personal, unsecured loan at the rate of 8.9% APR these days so we’ll use that as a startling point. So you go along to the Bank of Scotland and ask the nice woman behind the counter for £1500 think you very much. You get your loan and agree to repay it back over 2 years so you get even longer than with the log book loan in the example above. Your repayments with the bank would be £78 per month over 24 months meaning in the end you will have paid back a total of £1,867 or interest of only £367 compared to over £2500 interest with the log book company. Which loan seems like the best value to you? Not really much of a contest is it? Lets not forget you don’t have to put your car at risk when getting cash from the bank which makes it even more attractive.

How can a log book lender charge this much?

These companies get away with charging so much money because the consumers who use the product get themselves into a situation where they have little choice but to turn to predatory lenders to remedy their cash flow problems. Unfortunately if you have a bad credit rating or need money in a hurry you are going to find that high street banks won’t wan to touch you with a bargepole. So we turn to instant cash loan lenders and the like to fill a gap and more often than not end up in an even worse state than we started.

There are no simple remedies to this situation, if you need cash in an emergency there is often little choice available. If you find yourself out of cash on a regular basis then you need to reconsider how you manage your finances. Find ways to cut back on your expenses and try to put a little money aside each month so that if you even run in to a problem that requires a quick cash sum you have the ability to get over it without using the services of these log book loans lenders.