What to Consider Before Applying for Payday Loans and Logbook Loans

Before filling out that application form for a payday loan, logbook loan, or any other type of loan for that matter, be sure to ask yourself the following questions:

  • Can you afford to pay the loan back on time?
  • What interest rates will you be dealing with?
  • Do you need a long term loan, or will a short-term deal suffice?
  • What are repercussions of not being able to pay the loan back?

Keep in mind that the longer the loan period, the more times you have to pay interest. Be sure to consider how much you make and how much you can reasonably set aside each month to pay the loan back. Don’t borrow more than you can afford to pay back, as you risk ruining your credit score and burying yourself deep in debt.



In lending, there are two types of interests – fixed and variable. Fixed interest rates often result in high but constant repayment amounts, which means you generally pay the same amount back spread over a certain period of time. With variable interest rates, the amount you repay depends on several financial factors. This arrangement can result in lower repayments over time, although you have very little control over how much you have to repay each payment period. It helps to consult a broker or a financial advisor to determine what interest type best suits your needs and financial capabilities.

For more information about logbook loan interest rates, you may want to visit Just Logbook Loan.


Another factor to consider is how long you will need the loan for. Short-term loans such as payday loans gives you about one calendar month to repay your debt, just enough to make it to your next month’s salary. Logbook loans, on the other hand, offer lower interest rates and the ability to spread your repayments over longer periods of time.

While payday loans may technically incur less in interest rates than logbook loans, it is important to consider that there is also a shorter amount of time to pay the loan back, and missing your due date can sometimes be more expensive than simply stretching the loan period for affordable monthly payments.

Penalties for Failure to Repay

Make sure to understand the terms of agreement before signing up for any type of loan. Understand what penalties you might be facing for late payments or failure to pay the loan back altogether, just to make sure you know what you are getting into. Most reputable lending companies will check your credit report anyway before approving your loan application just to make sure that you are capable of paying the loan back over time.

The Bottomline

Applying for any type of loan and trusting your financial freedom to someone else can be understandably stressful. But with the right lender, and the right type of loan to manage, you can get by financially and not have to worry about getting buried even deeper in debt. At the end of the day, the decision on what type of loan to apply for and which lender to work with falls on you, so do your research and make sure that you are always on top of your financial situation.