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.

This first major problem with logbook loans is something which the lenders will inform you of on their very own websites. Its something that should immediately remove all thoughts of using this product from your head, but we tend to ignore the obvious when we are in desperation mode. It is of course the ridiculous interest rates that are applied to these loans.

Visit the site of any logbook loans lender and you will probably see a little table which will highlight the interest rates and the total amount you can expect to repay over the course. The website will fail to point out the importance of the figures or explain that you would be mad to take out such a loan unless you literally have no other choice. The lenders are to busy telling you about the fact that these loans are so easy to get that you can have your money tomorrow and the information about how much its going to cost you is hidden away at the bottom of the page.

The typical APR on one of these loans is a whopping 437% which means that if you take out a £1500 and repay over a period of 78 weeks you will be handing them back a total of nearly £4200. Do the maths and you’ll see this means your relatively small loan have just cost you £2700 or nearly three times what you originally borrowed. I don’t know about you but to me this doesn’t seem like too much of a deal and there’s no chance of someone mistaking this for a low cost secured loans product.

Unfortunately the high interest rates are only the start of the problems with Logbook Loans. The premise of this secured loan is that you put your car down as security for the cash but many of us fail to consider the implications of this before taking the plunge. Its simple really, fail to met the repayments and your car will be taken from you, auctioned and the proceeds will go to the lender. To make matters worse, the log book loans lenders won’t give you a loan for anything like the value of the car so if this happens to you, you’re really taking a big financial hit.

Also, these people are not like those down at your local bank. They won’t try and understand when you can’t make your payments because you’ve just lost your job or you’ve had some unexpected emergency financial situation. There will be no allowances made and you won’t be able to reduce your weekly repayments to suit. Neither will you be able to repayment holidays like you might get from your mortgage lender when you are in trouble. Miss just one payment and most lenders will send round the debt collectors to take your car from you forcibly.

There are other problems and horror stories associated with Logbook Loans but I will leave them for another time. The bottom line is, avoid this product if at all possible and if you have money troubles get a professional to make you up a financial plan that you can stick to.