There is no reasonable explanation why someone would go to a loan shark and take out a loan that is not only insufficient to cover your purpose, but comes with a horrendous fee and APR rate attached to it. Payday loans and log book loans are partially legalised loan shark operations that are very much in the grey area of the loan business legality and were seriously considered by pertinent legislative bodies to be outlawed for good. While lenders of such types of loans would not break your legs and beat you up for being late with payments, similarly borderline activities have been reported to have occurred.
As I stated above, which would be the reason why I am now deviating from my regular loan-related blogging, such loans come with horrendous APR rates that go way beyond anything which is considered decent. Furthermore, while log book loans do appear to have mellowed a bit with APR rates, or rather you can find lenders that will not force you to sell your kidney in order to repay the loan, the payday loans are just as bad as they were when they started appearing on every corner in so-called money stores.
If you have a car that is not under any financial burden and is worth a decent quid, instead of putting it up as collateral for a terrible loan, you should sell it, purchase a drivable vehicle of inferior capacities for a lesser amount and keep the change. You do not owe anybody money and you still have cash in your hand, probably about the same amount a log book lender would have given you. Swallow your pride and do it! Log book loans are not the solution, such a loan will just push you deeper into trouble.
A payday loan is similarly deceiving, making you believe that you just get an advance on your paycheck. The problem is that you are getting significantly less money than you would get come payday, furthermore, until the next payday is even a larger time period that you are used to managing. Chances are good that you will take out another payday loan, because you could not make ends meet, due to the prolonged dry period. Don’t you see it, it is a trap! You will wind up giving away your paycheck just to cover the interest and barely ever scratch the principal debt.
Many have made that mistake,do not make it as well. If you are in financial trouble, even have bad credit and cannot get a regular loan, then you should consolidate your debt. There are means, organisations, loans that exist just for that purpose, utilize them! Do not play into the mouth of the legitimate loan shark businesses, take back your own financial capacities and return to a regular life. I will return to this topic later, because I feel very strongly about this and bad credit, but my next blog will be about something normal.