Tag Archives: loan

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.
Requirements
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.

debt-services

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

debt-hole_medium

 

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.