Alternatives To Payday Loans

It is fair to say that payday loans have become very popular over the last few years. Indeed, lots of people who have bad credit or are unemployed and have limited borrowing options are turning to payday loans these days.

Of course, there’s nothing fundamentally wrong with resorting to a payday loans to fill a short term need. Indeed, many people who do their homework, accept the expense and don’t exceed the agreed expiry date find payday loans to be very viable solutions. However, it is worth noting there are alternative solutions available – such as logbook loans – which are quicker to obtain and cheaper to pay back than payday loans.

Logbook Loans

Car logbook loans are a form of finance which enable people to get almost immediate access to finance of up to 70% of a vehicle’s value simply by putting it up as security. Obviously, the main pre-requisite for these loans is that borrowers have to own a vehicle outright and must be aged 18 or older. The only other mandatory requirement that lenders look for is that borrowers can demonstrate an ability to repay the loan.

Logbook loan providers are quite flexible in this respect, far more so than issuers of other loan providers.  Indeed, even applicants who are unemployed; renting a property; have been refused a loan elsewhere, or have bad credit will more than likely be approved for a logbook loan as long as they own a vehicle and can prove they are able to make their repayments.

Payday Loans

Chief Advantages over Payday Loans

Perhaps the greatest advantage of logbook loans is the speed of the lending process. Because there are no credit checks and the paperwork required is minimal, applicants can normally have access to their loan in less than 24 hours. Moreover, loans of this kind are normally available in larger amounts (some providers offer loans of up to £50,000) and for longer periods of time (up to 24 months) than payday loans. Naturally, these advantages can, in certain circumstances, make them far more attractive to borrowers than payday loans.

Relative Costs

Of course, logbook loans aren’t as cheap as traditional loans from banks and building societies. To be sure, most logbook loan borrowers will have to pay an APR of around 400%; however, these offerings are still significantly cheaper than payday loans, many of whom charge rates that are five times higher.


As with any lending option, borrowers must make themselves aware of the risks involved with taking out a logbook loan. Whilst they are without doubt very convenient and offer a number of unique benefits, borrowers need to bear in mind that their vehicle can be repossessed if they default on their payments. Whilst most lenders will regard this course of action as being very much a last resort, it is something that can happen. Fortunately, most logbook loan lenders are willing to discuss other options with borrowers who struggle with their repayments before they issue a repossession request.

If you are short on cash or behind on your bills, a quick infusion of
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