Both of these “no credit check” loans are appealing to people who have bad credit or have been refused by other lenders when they applied for loans. All logbook loans lenders and most payday loans lenders, give loans to people with very bad credit histories. This is the reason these loans are such a popular option with people who cannot get a loan anywhere else due to their poor credit rating. Both of these types of loans charge very high interest rates because they are taking a greater risk when they loan money to people with bad credit histories.

In recent years there has been much effort put into the industry to clean up the negative image that has become associated with these types of loans. Logbook and payday loans appear similar on the surface but there are some significant differences that may induce potential borrowers to choose one type of loan over the other.

1. Log book loans require you to put up your car as security before you are given any money. The car is used as collateral because if someone fails to repay the loan then their car could be at risk. You have to provide proof of ownership before handing over a car as collateral. Payday loans, on the other hand, are much easier to obtain since they are unsecured and the borrower only has to show that he has a regular income source.

2. Logbook loans allow you to borrow a large amount of money, especially if the value of the vehicle that was used for security is very high. In England, where these loans are especially popular, it is possible to borrow up to £50,000 if the right collateral is provided. In contrast, payday loans are limited to under £1,000 in England. The demographic that a logbook loan appeals to is also the same one that uses diamonds or sports cars for collateral in pawn shops to obtain huge amounts of money.

3. Payday loans are only taken out for a month at a time and that is why they are called “payday” loans. These loans can be rolled over into the next month if required, but are generally meant to be short-term loans. Logbook loans, on the other hand, start with long repayment periods of 12 to 18 months because the amount of loan taken out is much bigger and most people need a while to repay this larger amount of money.

4. Logbook loans tend to have lower interest rates because a car or other vehicle has been used as security. Lower rates are also in effect for this loan because the length of the repayment time is much longer. Sometimes logbook loan interest charges can be 100% less than those charged by companies who provide payday loans.

This guest article has been submitted by Louis Rix, the automotive expert from Netcars.com

Clearly Displayed Rates and Terms

Hidden fees are not only frowned on, they’re also illegal. All fees must be clearly displayed where customers can see the information. Most lenders have the information on their site, and in storefronts. Before signing for any payday loan, you should understand all the fees you will be charged when the loan is accepted. This includes the repayment date and the amount owed.

Common Language

Payday lenders that present you with a contract full of legal language are in violation of the law. Contracts and information must be written in clear language that is easily understood by most people. If you are uncertain about anything in the contract, ask them to explain it to you so you can understand exactly what you are agreeing to.

Payday Loans aren’t Always Legal

Several states have banned payday loans completely. If you live in one of these states, you can still get a payday loan by going through a lender online. However, you will not be able to turn to your state government for assistance if you should wind up working with a shady lender. If you have any questions about payday loans in your state, contact your local Department of Financial Regulation to learn more about the laws and allowed lending practices.

State Variations

The laws regarding how much you can borrow and other details vary greatly from one state to another. Most states have limits on how much interest you can be charged, but the lenders can offset lower interest rates with higher application fees. The amount a loan can be written for are usually limited to $500 dollars, although some states will allow you to borrow up to $2,000 dollars. Most states also limit the number of times a loan can be rolled over or extended. States like Delaware will allow up to four rollovers, while states like Ohio will not allow any extensions.

Limitation to Collections

Lenders are limited as to how much they can charge borrowers when an account goes to collection. Payday lenders are bound by the same laws as other financial institutions, and in some states the laws are actually stricter. All payday lenders may pursue the amount remaining on the principal balance. Ohio allows lenders to also collect court costs, bank charges and a collection fee of $20 dollars. However, the state of Michigan only allows lenders to collect the principal balance owed plus a return check charge of $25 dollars. Because the laws regarding collections vary greatly from one state to another, you should visit your states Department of Financial Regulation to discover what the specific laws are in your state.

There are times when a payday loan can save you money and help you stay afloat financially, despite their high fees. However, you should know what your rights are before agreeing to any loan. Knowing what the terms are and how much the financing will cost you is the only way you can make an informed, intelligent financial decision.

Guest author Donald Kyte is a personal finances guru and freelance blogger writing for www.paydayloan.org.uk.

Most people are aware of the ever-rising costs of health care, and employer health insurance costs are rising as a direct result. According to a Kaiser Family Foundation report on “Health Care Spending in the United States…”, the United States’ health care costs are the highest among comparable countries and have “one of the highest spending growth rates” as well (2008). Employers need not only worry about high health insurance costs staying high, but getting higher.

Health insurers will continue to raise their premiums as high as rising health care costs will allow. Kaiser Family Foundation reports in “Employer Health Insurance Costs…” that between 1999 and 2010, health insurance premiums grew a cumulative 138%. Essentially, a correlation between health care costs in the United States and health insurance costs from employers will always exist, so employers should be aware of the health care costs growing every year.

2. Health and Benefits Plans are Amongst the Most Costly Expenditures for Employers

In order for employers to provide a health and benefits plan for their employees, they must put the largest chunk of their spending money toward purchasing the plan. The Employee Benefit Research Institute revealed that by December of 2010, the costs of providing benefits for employees reached 30.3 percent of the total cost of compensation. Employers generally want to provide health insurance for their employees, but the cost is high and rising, so it’s important to be aware of how the money is being spent.

3. Unnecessary Costs are More Than Likely Hidden in your Plan

Because insurance companies seek maximum profit, particularly as health care costs increase, they intelligently compose plans that may need a closer look. Employers should not assume that any insurer is providing the best possible coverage for what they are paying or that any insurer wants to be entirely honest in their underwriting and formulas.
Many avenues designed to help insurers make more money are hidden in the technicalities of a health care plan, so employers should seek to find these issues that are accruing more cost than is necessary.

4. Knowledge Gained from Audit can be Useful in the Future

Any knowledge employers learn from an audit that reveals issues and unfair practices can be useful for future insurance planning. For example, the American Medical Association reported a 20 percent filling error rate in 2011 for insurance companies. Not every issue found in an audit was intentional by the insurer, but issues may exist accidentally and are likely recurring problems. To be aware of the patterned problems means to shield employers of future costly mishaps.

Ashley is a guest blogger who specializes in health insurance audit and has a passion for health insurance litigation.

The Economy

The Office for National Statistics showed that, for the first three months of 2012, the economy contracted by a further 0.2% on the previous quarter’s drop of 0.3%, leaving the UK economy looking pretty flat and somewhat fragile.

But just how strong is the average Brits personal financial position in 2012?

At the end of the previous financial year Clydesdale Bank asked consumers about their plans for their personal finances and saving intentions for the coming financial year. Interestingly, though perhaps unsurprisingly, the majority of Brits plan to increase the amount of money they save.

The survey found that over a quarter (28%) of people living in the UK intend to save even more money than they did over the previous 12 months, yet shockingly, 30% of savers have no idea what the interest rate on their savings account is.

While saving for an emergency is around the top of the list of reasons to put money aside for most people, many are also choosing to save for luxury items or holidays. The flat economy also creates opportunity for big purchases as price drops become more common.

Increased Lending Interest

It is perhaps for this reason that interest in loan products, as evidenced by the highest rate of loan related searches online in 3 years for the first quarter of 2012, is so high. Amongst the most searched for terms are car loans and holiday loans.

This could also be seen to be supported by the report’s findings that less than one in every ten people living in the UK has more than £10,000 in their savings account. Fortunately for those who do intend to take out a loan to cover the cost of their desires, be it a holiday or a new car, the APR on personal loans has become quite competitive in recent months, going as low as 6% over 7 years for loans up to £15,000.

As the economy outlook for the UK appears pretty flat, if you are one of those considering taking out a loan, it is well worth keeping an eye on the competitive APR’s to ensure you get the best deal.

Stuart writes for various financial blogs on behalf of Clydesdale Bank, one of the UK’s leading banks.

What’s Your Plan B?

If your business were to be affected by a catastrophic event – such as a burglary, fire or flood, what would you do?  Having a back-up plan in place is a good idea, but will you have the financial resources required to implement that plan?  A sound insurance policy makes a great Plan B.  In fact, insurance is not a luxury, it should be your Plan A.

Choosing the Right Insurance

There are several different insurance types available for businesses, they include:

• Employers’ Liability Cover – this is a requirement for any business that employs someone.  It covers your business in case one of your employees becomes ill or injured as a result of something that happens in the workplace.
• Product liability insurance – this covers you for any claims as a result of issues with your products
• Key man insurance – this type of insurance protects you against the financial cost of the loss of your key personnel.  If your business strategy relies on the knowledge or skills of one particular person, this can be incredibly valuable – but it’s a good idea to diversify and ensure that you have enough employees to pick up the slack.
• Group life assurance – This policy is used to pay a lump sum to the family of an employee if that employee dies.

The above are the most important types of insurance policy that would be used by a business.  It’s important to remember that insurance is not the same as crisis prevention, and that your ideal scenario would be for insurance to be unnecessary.  However, if you want to be confident that you can manage a crisis should one occur, then you should make every effort to have sufficient cover for your business.

You will not need employer’s liability cover if you have a one-man business, but you may want to have product liability insurance.  If you’re not sure what kinds of insurance you need, then you should speak to an insurance adviser and explain your personal situation and the risks that your business faces.

You can reduce the cost of your insurance premiums if you can prove that you have made an effort to reduce the risks that your business faces. Examples of good risk management would include improving your health and safety policy, training employees so that you aren’t dependant on just one person for a key business process, improving your product testing process, and installing centrally monitored burglar alarms to improve security.

Guest article by James Harper for Insignia, experts in crisis prevention.