The Numerous Advantages of a Logbook Loan
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by: resetfinance-log
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Everyone knows what it's like to be stuck for money and I'm certain the majority of us have been through that sinking feeling when an unplanned expense crops up at the end of the month. Remaining sane at times like these can feel impossible , nevertheless, the stress of trying to scrape together cash has definitely been eased by the success of immediate, temporary loans. Most people be familiar with the concept of a Payday loan and some may have even benefited from one. While payday loans have seen great success, making a full repayment within such a short space of time has sometimes proved difficult for some; a happy alternative can however be found in the form of Logbook loans. Recognising a gap in the market for people needing instant cash minus the challenging pay back stress, a Logbook loan permits individuals to borrow cash against the value and security of their vehicle for an extended period of time. Typically, these types of loans allow a borrowing period of anywhere between one and six months although extended repayment plans are offered by some lenders. Similar to payday loans, logbook loans are ideal for people with low credit ratings to obtain emergency funds. The attraction of a logbook loan is that prospective customers have the ability to borrow significantly more with loans reaching up to ?50,000. Although it would be lovely to be granted the full ?50,000 borrowing amounts are determined by the value of your car; generally lenders will lend 50% of the vehicle's value but some can offer up to 75%. Can I use any vehicle for a logbook loan? To be eligible for a logbook loan, a vehicle must carry a V5C document (or logbook as they are commonly known) and be worth over ?500 or ?1,000 depending on the loan provider. Generally these vehicles will be made up of cars, vans motorbikes and lorries however using caravans, boats and yachts is a viable option. As a rule of thumb, vehicles will need to be ten years old or less to be eligible for a logbook loan although cherished classic cars may also be accepted. Vehicles subject to finance agreements are not exempt from a logbook loan arrangement but they must be almost clear of finance. Logbook loans vs payday loans Although perhaps not yet as common as payday loans, logbook loans certainly have several advantages: . Short term savings Paying back a logbook loan early could see you parting with less cash than a payday loan. With repayments typically being 10% per month of the amount borrowed, a ?1000 loan , if paid back within one month, could see you repaying ?1,100. A payday loan of the same amount and within the same timeframe however would incur ?250 in interest totalling a repayment figure of ?1250. . Borrow money for longer The advantage that money tends to be borrowed for longer periods of time can be comforting to some people. Although logbook loans allow you to borrow money for a reasonable length of time, they should only ever be used for emergencies rather than as a solution to continual money struggles. A good rule of thumb would be to repay as much as you can comfortably afford each month to guarantee minimum interest fees. . Meet your lenders Although initial applications are filled out online, the rest of the process is carried out personally. After the online application has been filled in, a trip to the lender is required to check the vehicle's documents. At this stage, customers also discuss the loan agreement with the lenders. . V5C versatility Because a logbook loan application is decided based upon ownership of a wide variety of vehicles, there is more chance than ever of obtaining a loan. So where's the catch? Well, put simply, there isn't one. As long as you are the owner of a vehicle, borrow a reasonable amount and stick to your repayments, all should be fine and dandy.
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To discover more around logbook borrowing and how they run in the England, explore the following websites: LogbookUK Offers Log Book Loans Around The UK Alternatives to Payday Loans Logbook is a Logbook Loans Directory website for vehicles in the United kingdom Getting Your Loan
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