Mobiles are changing the way we do everything in today’s world. Not only are they improving healthcare and the ability to get education to people who need it the most but they are changing the way people work in developed countries.
In terms of managing people’s financial health with a mobile device, there are now all kinds of apps that allow people to budget and even apply for loans, via their mobile phones. All this is a huge step forward for technology.
Some would argue that this is going too far, do we need to apply for a loan whilst on the move? The ethics of lending is interesting and we are still coming to terms with the ability to take out loans so quickly and easily and the impact that has on society.
The business of lending is very much in the news at the moment, Payday loans are increasingly in the spotlight and consumers are becoming more aware of the risks of unscrupulous lenders offering quick cash with a catch – very high interest rates.
The reason that these loans can often be so expensive is that they aren’t secured against anything you own, so there is a risk for the lender in providing the loan. Interest rates need to be high in order to justify this.
Other forms of loan
There are however other types of loans that if you don’t own a property as security can be useful to have. For example logbook loans are one of the cheapest ways to take out a cost effective loan if you choose the right lender.
These kinds of loans lend to you using your car as security, if you don’t pay the loan, your car is at risk. This means that a good lender is able to offer a loan at a competitive interest rate because they have already valued your car and completed the checks on that. They know that if you fail to make your payments, your car will cover some of their costs.
More awareness needed
It’s striking that logbook loans aren’t discussed more when it comes to discussions about Payday loans and other lending that has been under the spotlight in recent years. If you choose the right lender, one that doesn’t have early settlement fees, one that scours the credit market to find the best interest rates and one that offers flexible payment terms, then in many cases you can get a good deal if you need short term cash fast.
Of course loans should only be taken out if you know you can pay it back. Reputable lenders will conduct checks on applicants on a few indicators to make sure that they are in a position to be able to pay the money back, but at the end of the day only you know if the loan is affordable for you.