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Asset securitization was one of the growth industries of the great bull market of the 1980s and 1990s. The concept of packaging up loans into legally isolated special purpose vehicles and then issuing tranches of bonds based on the asset pools first arose in the 1970s but really became a critical part of the global financial system in the decades that followed. As a credit multiplier, it freed up capital for banks and enabled the growth of new lending.

The growth of residential mortgage securitization markets (RMBS) was followed by the development of commercial mortgage securitization markets (CMBS) and then auto leases and loans, credit card receivables,  and even royalties on songs and turnstile receipts for sporting venues and football clubs. The inexorable multiplication of the value of assets securitized turned into a full-scale boom (and some would say bubble) in the early years of the twenty first century. New financial instruments emerged such as credit default swaps (CDS) and then synthetic hybrids such as CDOs, CLOs and CLO-squared instruments. Structured finance evolved into a veritable alphabet soup of acronyms.

The first strains of the credit crisis were felt in the last days of July and early days of August of 2007. Asset backed commercial paper markets, an obscure corner of the inter-bank liquidity apparatus but one on which many institutions relied on for their wholesale funding requirements, began to dry up. And so began the domino effect that led to the failure of the British bank Northern Rock and ultimately the collapse of giant financial institutions. When Lehman Brothers collapsed in September 2008, it almost seemed as if global financial capitalism had met its maker. Only massive government bail-outs of the banking sector in the United States and United Kingdom averted outright collapse.

So the great lending drought was followed by the Great Recession. Secured loans dried up as banks did everything possible to reduce their exposure given their capital constraints. For a time it seemed that securitization was the first victim of the financial crisis, missing in action. Eventually, propped up by government schemes such as the TALF, the market re-emerged and the long journey back to financial health began for the sector. Securitization suffered a cardiac arrest, but the patient did not die and the market remains active.

Logbook loans and payday advances are two financial products that have been in the news quite a lot recently due to the fact they have been rising in popularity amongst people with bad credit ratings. With the credit crunch still not over many of us are struggling, so the promise of an easy fast cash loan can be a little too hard to resist when we need to get our hands on money as quickly as possible. If we have no one close by to help then we will take cash from pretty much anyone who is willing to hand it out whatever the potential consequences.

You have probably heard of payday cash advance loans before, its a bad credit loan that is available to pretty much anyone who has a job and a bank account. You take out this loan over a very short period of time and you usually agree to pay back your debts when you get your next paycheck. Loans can usually be extended but doing do incurs large fees on top of the already extortionate interest rates. Expect to pay £20 interest on a 4 week £100 loan.

Logbook loans are bad credit secured loans which uses your car as collateral for your debt. If you fail to make repayments on time there is the chance that the lender will turn up at your door ro take possession of your vehicle which they will sell to recoup the money you still owe. You might think there is no chance of this happening but unfortunately unexpected events often take place in life which have put pay to your best laid plans. Paying high rates of interest on a loan is unfortunate, but losing your car because you could gather the money to make a repayment could be a veritable disaster.

Both payday advances and logbook loans are credit products which are best avoid unless you truly have no choice but to use them. Such times will occur very rarely for most of us, and if you budget your income and expenses properly you should find that you can always make your money go far enough, no matter how much is included in your monthly paycheck.

When you are short of cash (and who isn’t these days?) and need a loan, where should you turn to? Banks are a pain. You don’t want to pawn your stuff, nor do you want to use a payday loan with their high interest rates. If you own your car with no debt (or little debt) on the car, you may qualify for a pink slip loan.

Pink slip loans are an easy way to borrow money with your car. They work like a home equity loan. If your income qualifies and you have built up equity in your auto, then you can probably get that money fast.

Here is what you need to do to qualify. You will need to have the car title and that title must be in your name. The car title should be free and clear of any loans. Even if you have a small loan against your car, some lenders may still loan you the money. Ask the lender.

To get the loan, the car has to be registered in state where the lender is. That’s easy. Typically a pink slip loan lender is only allowed to loan in the state in which the car is registered. So a car registered in Nevada has to get a loan from a Nevada lender.

You must provide proof of a valid and up to date drivers license. Once again very easy. The lender just wants to make sure you are who you say you are and that you are a legal driver.

You need to have a current automobile insurance policy which is up to date and paid for because all such lenders require that your car be fully insured. This is because your car is collateral for the loan and he has to protect his interest in the loan. You must have at least the states minimum insurance on the car.

You must verify your monthly income which you can do by showing your monthly pay stub with some lenders requiring you to furnish the last 2 stubs to get the loan. If you don’t have a job but receive a monthly check from social security or a disability check, you can still qualify.

Appraising your vehicle. What your car is worth and your monthly income will determine how much the lender will loan you so make sure your car is running well and looks great. The lender will loan you money based on the condition of the car, the options on it, mileage and model of the car. Cleaning your car before bringing it to the lender will ensure that it looks better, increasing the amount you will be allowed to borrow.

This has shown you some of the steps to get a pink slip loan. Now that you are armed with this information you can consider them the next time you need some cash.

Having said all that, you need to be aware of the negative aspects of these car title loans. Remember that the reason the bad credit loans company is willing to give you the cash you need is because they have the insurance policy of having your car pink slip in their possession. If you fail to keep up your side of the bargain by repaying your loan on time then they will be all too quick to turn up at your door to repossess your vehicle. Your car can be sold to make up fr the cash you still owe and there is a chance you will never see a penny from the sale.

On top of that, the auto title loan is burdened with extra high interest rates. Although they are not quite as extortionate as payday advance loans you will still end up paying back far more than you borrow. Keep these thoughts in mind whenever you consider using this bad credit loans product, and do all you can to find some other way to get the cash you need.