Payday Loans
One benefit of payday loans is that they do not take security for the loan so you will not lose any asset in the process if you cannot repay, but they have downsides too. Payday loans come with generally higher rates of interest than other loans, so even borrowing for a short amount of time can be an expensive option.
Securing A Loan Against Your Property
The advantages and disadvantages to secured loans, as with logbook loans (see below) are the converse to those of payday loans. The downside is that you are putting your property at risk if you are unable to keep up with the repayments. The advantages, however, are that secured loans generally offer better rates than payday loans. In taking security the risk to the lender is minimised so they are capable of setting lower rates knowing they will not lose out themselves.
Logbook Loans
They may be considered less risky options than loans secured on property, however, as many of us view our vehicle as a more expendable item than our house, should you fail to repay.
In weighing up all these options you must consider a number of things. How long do you need to borrow money for? How much can you afford to pay for the loan? How capable are you of keeping up with the repayments?
In weighing up all these options you must consider a number of things. How long do you need to borrow money for? How much can you afford to pay for the loan? How capable are you of keeping up with the repayments?
This last one is particularly important when considering secured or logbook loans and brings with it a further question, how likely are you to lose the asset you have secured the loan against? Many may consider their car to be a more expendable security. There is no one right answer, it is dependent on each customer's circumstances.