What is a log book loan
What are logbook loans
Welcome to our logbook loans explained site we are sure you will find all your looking for on this website. Austerity the new byword for hard times has a lot of people struggling with cash problems, this in turn forces us to look for alternative ways of paying bills etc. Some people are so strapped for cash they are literally living hand to mouth pay day to pay day, this can be a real problem when something happens like a breakdown of your heating or an appliance which leaves you in a position of not being able to have the repair carried out or replace whatever is broken which in turn causes a financial crises.
How logbook loans work
As the title says anyone can raise cash instantly, logbook loans allow you to borrow cash against your car, no credit check is required in many cases, you get an answer to your application more or less straight away, and usually these logbook loans are a 30 day type of advance to tide you over your crises.
A maximum amount anyone can borrow against logbook loans will be different for each individual case tough it will not usually be more than 50% of the cars value. In qualifying for a logbook loan the borrower must prove they own the car without any finance. Then after an inspection of the vehicle to assess the value you will have to complete the usual application form before you actually receive the loaned money.
Just like a payday loan it is possible to extend the term. this should be avoided as it can lead to a cycle of spiraling debt which in turn eventually means you have your car taken to cover the logbook loans you took out.
What are the fees and interest rates
Log book loans much like pay day loans are not cheap and can often mean high interest compared to other ways of getting a loan such as from a bank, credit card etc. This is the price you have to be willing to pay for the opportunity to receive a quick fix of cash so don’t forget it is an expensive way to raise funds.
After taking out log book loans you will find the amount of the loan on the paper work, though to find the true cost you have calculate the APR which in some cases can amount
to double the loan cost, it’s possible that in the future law makers will impose restrictions as they have on payday loan companies, this would make log book loans cheaper but by no means a bargain.
how much are you risking
When you put your car up as collateral you leave open the risk of a real problem if you come up against a second crises or financial emergency, this could result in you losing the car to the log book loans company for a very low percentage of it’s true value and at the same time you will have no transport unless you are lucky enough to have access to a second car.
If you think a logbook loans company will go easy on you because of your second emergency think again they are not a charity and will come after the car if you fail to keep up with your payments in fact some logbook loan companies are now insisting on GPS or may want to keep your spare keys
I think that if someone is having a difficult time paying bills to the point that they need log book loans, then there is a strong possibility that they can’t afford to replace their car if they lose it.
how to try to avoid having log book loans
Without sounding condescending it is of course better if you can keep away from loans completely though I understand that in today's world just about everyone has debt of some kind and the need to borrow is considered normal now, if you plan your day to day running costs it can be possible to eliminate the need for log book loans altogether the Government money advice service can help with this.
When cutting out any excess is a non starter then other ways to avoid the need for a logbook loan is to ask your boss for more hours or find a second income stream such as waiting on tables, look for a delivery job with a take away they all use them nowadays or other trades such as florists require flowers delivering.
Some examples of second jobs
Teach courses at your local community centre, college continuing studies program, or community college
· Get a job at a retail or department store, especially during the holiday season. You may even get discounts on purchases.
· Sell stuff on eBay and other online auction sites
· Become a handyman/womanSource: www.whatisalogbookloan.co.uk