logbook loan

A look at Logbook Loan basics

A logbook loan as the name entails is basically a secured type of loan. A person’s car is used as collateral when taking out a logbook loan. What this specifically means is once the loan has been approved, the lender of the loan becomes the new temporary owner of your car for the duration of the loan until you foot the whole amount of the loan plus the interest. On a lighter note, the borrower continues to physically use and be in possession of the car as he repays the loan he took against the car. Applying for a loan is pretty simple as you can do it online or from a brick and mortar office lender. The maximum amount of money you can apply for is capped at 50% or 70% of the value of the car depending on the lender you have chosen to do business with.
Suitability of logbook loans
Essentially, logbook loans are suitable for individuals with a poor credit rating who cannot avail a loan from high street banks and financial lenders due to the status of their credit score. The fact that credit checks are not a prerequisite to the approval or rejection of a logbook loan is what has made it very popular among UK citizens with bad credit.
Unlike conventional loans, logbook loans do not require stringent requirements. In fact, you simply need to be a person of sound mind, a UK citizen who legally owns a car and a person above the age of 18 years to be able to apply for a logbook loan. In addition, your car should not have any kind of financing attached to it or have been in operation for more than 10 years. If you meet these simple requirements, then you are eligible to apply for a SimpleLogbookLoan.
Paying of a logbook loan
A conventional logbook loan runs for a period of 78 weeks. A borrower can choose to either make repayments weekly or monthly depending on their comfort. One can choose to make repayments via monthly debit deductions or make use of a collection agency which unfortunately is much more expensive. There is the option to repay the loan early in full though there are a number of lenders that charge a penalty should a borrower repay their loan early in full. It is therefore important that you read the fine print prior to applying for a logbook loan with a given lender.
Major risks
As compared to other kind of loans, logbook loans generally attract a high interest rate considering the fact that they do not take into consideration the credit score status of an applicant. The APR for a logbook loan is capped at somewhere 400% but could go higher than that depending on the lender you are doing business with. It is therefore instrumental that you check the APR before applying with any given logbook loan lender. The second major risk is repossession of your car in the event that you are unable to repay your loan. Your lender might repossess your car and sell it to recover the loan amount they advanced you. What’s worse is if the proceeds of the car are not sufficient to cover the loan amount balance, then the lender can take you to court to recover the remaining amount.


Tips on How to Manage Your Finances and Stay Debt Free

Being in debt can at times feel like a hopeless situation. You seem to try too much to put the situation under control but simply never get it right. As if that’s not enough, you are always on the edge, constantly wondering and always anxious that the next call could be from your creditor asking you about repayment. However, if you are keen on staying out of the red line, there is no other way other than to effectively manage your finances. The dilemma is in the fact that not everyone is a financial guru and therefore financial management is more or less an alien phenomenon to many ordinary folks in the UK or any other part of the world. It is for this reason that this article has been penned to enlighten you on a number of tips you can utilize to effectively manage your finances and stay debt free.
The only way you can stay on top of your spending is if you budget on how you are going to spend the money you have. As a rule, never spend more than you earn or spend the money you don’t have. Budgeting entails planning for your money and understanding how each penny will be used. It’s a good way to avoid impulse spending and ensures that you don’t spend on unnecessary things.
Put a leash on the use of credit cards
Truth be told, credit cards have a way of getting you into debt as you are spending cash you don’t have. Most of the time, you find yourself charging for virtually everything without pausing to comprehend the impact it will have on your finances. It is therefore prudent that you avoid using credit cards or if you must use, charge amounts you can comfortably pay at the end of the month. The wise thing to do would be to shop using hard cash as you will feel the pinch as opposed to the use of credit cards. Credit cards tend to make people spend more than what they would if they were using crisp cash.

Cut down on unnecessary expenses
It is easy to be sucked into partying every other weekend or eating in posh restaurants every once in a while. While this is laudable if you have sufficient disposable income, prudent management of your finances requires that you check your expenses. Only spend your money on what is necessary and avoid unnecessary expenditure which could seriously hurt your finances and put you into debt. Additionally, rather eating at the restaurant every single day, you could make food at home and carry it to work for lunch. It could save you a great amount of money and help you stay out of debt.
Apply for low interest rate credit card
It is highly not advised to rely on credit cards for every purchase. However, if you must use a credit card, then ensure that you apply for low interest rate credit cards. The logic is pretty simple. The lower the interest rate you pay on a credit card, the more money you get to save.


How to Reduce Credit Card Debt

The reason that many people find themselves stuck deep in debt is because they fail to admit that they have a problem. The first step towards being debt free is admitting that your debt is no longer manageable and a problem that needs help. Unfortunately, most people are egotistical and suffer in silence while there debt continues to rise. A lot of people in the UK find themselves with high credit card debt as a result of unchecked spending. A few admit the problem and seek for assistance from relevant institutions while others are adamant and suffer in silence.

If you find yourself steeped in credit card debt, the first thing you need to do is admit that it’s a problem and that you need professional help. There is no shame in admitting that you cannot effectively service your credit card debt and need professional help. Staying in denial just to save face will definitely make your situation worse; wondrously affect your credit score while at the same time affecting your personal life.

If you find yourself in huge credit card debt, the first course of action should be to admit to your credit card company and negotiate with them how you are going to settle your debt. Ordinarily, creditors impose or charge unnecessary penalties when you are unable to meet your financial obligations. To avert such a scenario and to stem your credit card from skyrocketing, the wise thing to do is to approach your creditor and prepare a plan on how you are going to make the repayment. However, since you are probably not versed in financial and debt negotiations, the best course of action would be to hire the services of a debt settlement company or professional.

Such professionals have intensive knowledge not to forget the prerequisite experience to negotiate a better debt settlement on your behalf. Such debt settlement companies are bound by law to work in your best interests while at the same time ensuring that the settlement they arrive at with your creditors reduces pressure on you and is good enough to enable you pay in a lump sum according to the agreement reached.

Another way you can effectively reduce your credit card debt is if you consolidate your debts. At times, you are dealing with a number of debts at a go and simply can’t find the right mix or don’t have the required finances to make payments for your debts as initially agreed. A debt consolidation company can consolidate all your debts including your credit card debt into one single debt. The greatest advantage is that instead of dealing with different creditors, you will be paying a certain amount of money to your debt consolidator every month depending on the new agreement you have with them.

This not only reduces stress for you but also gives you peace of mind as you won’t be dealing with calls and imposed penalties from different creditors but rather deal with one organization in repaying your debt. That notwithstanding, in order to stem high credit card debt, it’s advisable to use your credit card prudently!


Debt Services – a look at what they are, the different types as well as the benefits

Mention the term debt and almost everyone can identify with it. It’s like its cast in stone that each and every single one of us must be embroiled in some kind of debt. Well, even for the few ones who claim not to have any kind of debt, the truth of the matter is that they can’t run away from public debt. In simple terms, a debt refers to money owed to another party. The person who borrows money is known as the debtor while the one who advances or offers debt services is known as the creditor. In the UK, banks, individual mortgage brokers as well as private mortgage companies are responsible for and are duly authorized to offer debt services.

When should you opt for debt services?

Ordinarily, people resort to apply for a loan when they seek to purchase or buy assets that are expensive and yet they do not have that kind of cash at the moment. This could be buying a home, piece of land, setting up a business venture, buying expensive jewellery, expanding business, buying raw materials, buying construction materials and so on and so forth. When you seek to purchase or finance any of the aforementioned yet you do not have the required cash at hand, the logical thing to do would be to opt for debt services. While going for debt services can be quite a relief and the best option when you don’t have cash, unchecked expenses could make repayment quite cumbersome hence the need to exercise caution with how you spend the money advanced to you.

The different types of debt services

The kind of debt advanced to you by institutions offering debt services is usually informed by the needs of the person applying. While it’s easy to get overwhelmed and use the money advanced to you inappropriately, remember that steep debts can affect not only your finances but also your personal life. With that said, some of the services offered by debt management companies/banks include:

  • Debt deduction services
  • Credit repair
  • Debt management solutions
  • Debt agreements
  • Consolidation loans
  • Bankruptcy



When should you enlist the services of a debt management company?

Well, let’s face it. Managing debt requires discipline and this is something that most of us lack when it comes to finances. If you find yourself in financial troubles and unable to get out of debt, the logical thing to do would be to enlist the services of a debt management company. Inability to repay loans can be quite stressful and affect every aspect of your life. As such, hiring a debt management company will not only relieve stress but also ensure that they work out a good repayment plan for you as well as ensure that you are on top of your finances.

Benefits of debt services

When seeking for cash to invest in a business or buy property, taking out a loan is the most effective option. However, inability to repay the loan as agreed and in time could put you in serious financial problems. If you find yourself buried in deep debt and unable to climb your way out of it, seeking for debt services is the logical thing to do. The number one benefit is the fact that debt reduction companies will draw up for you a repayment plan that will ease some pressure from you. Secondly, they can also negotiate with your lenders/creditors for new repayment conditions and terms as well as take over management of your debt as well as distribution.



A Sneak Peek Into the Different Types of Consumer Debt

In a world driven by impulse buying and irresistible advertisements coupled by the need to have the best in life, staying out of debt can be a herculean task so to speak. In fact, it’s correct to say that we all are in some kind of debt. The difference between the kind of debt one has from the other is if it’s manageable or not. That notwithstanding, it’s important that you understand the kind of debt you have. There is a difference between mortgage or car loan debt as compared to a credit card debt.

An understanding of the kind of debt you have makes it easy to plan your finances in terms of which kind of debt you should work on repaying before everything else. In any case, each type of debt has a certain commensurate impact on your finances as well as your reputation. An ignorant approach to debt can easily get you into financial trouble hence the need for you to understand the types of debt you have and how to effectively manage your finances to keep the same debt at a manageable level.

Unsecured vs. secured debts

It is extremely important that you understand the type of debt you are embroiled in. Basically, there are two types of debts – secured and unsecured debts. A secured debt as the name implies is the kind of debt borrowed against a collateral/security. Examples of secured debt include mortgage loan or a car loan. You cannot be advanced secured debt if you lack collateral as a fall back plan for the lender should you be unable to repay your debt.

Unsecured debt on the other hand is not supported by any collateral and in the case that you are unable to repay your debt, you lender or creditor can threaten you, penalize you by adding hefty interest rates or simply pursue legal action. You do not risk losing any of your precious assets because the debt itself is not backed by a security. Credit card debts are examples of unsecured debt and this is why in the event you are unable to clear your credit card debt, a credit card agency might sue or simply enlist the services of collection agencies to recover their money. Perhaps the distinction between secured debts and unsecured debts is the fact that unsecured debts tend to attract high interest rates due to the lack of collateral to back them up.

Installment debts vs. revolving debts

Another distinction when looking at debts is of course how a person ends up repaying for the debt say on a monthly basis. For installment debts, you basically have an idea of the amount of money you are supposed to pay each month. There is a fixed amount of money you repay to the lender every single month hence making it easy for you to plan your finances. Mortgage or car loans are examples of installment debts where you pay a fixed amount of money monthly.

The greatest advantage of installment debts is that you don’t have to deal with surprises because you have a clear idea of the amount of money you will be paying on a monthly basis. Revolving debts on the other hand are the opposite of installment debts as they do not ascribe to the monthly payment philosophy. An example of a revolving debt is the credit card debt as this kind of debt is made based on a given percentage of the total money you owe on a given month. The percentage of the amount you owe could be anywhere between 2 and 5%.