One thing that has been going around the entire UK and for the right reasons is UK logbook loans. Over the years, the financial situation of the people in UK have worsened due to the changing shift of the market and many have suffered a reduction in income and also have lost their jobs which has become sustaining under this conditions difficult.
Thus, they are always looking for loan options that will help alleviate your financial conditions and help you to leave a better life and help combat any monetary problems. Opting for logbook loans is one such option that you can look into to get through your financial crisis.
‘It is a sign of a weak mind to be unable to bear wealth’
What are UK logbook loans?
Logbook loans are a kind of secured loan that is given out against your vehicle which is listed as collateral. You transfer the ownership of the vehicle to the lender to acquire the loan. However, you can still continue using it even after listing it as collateral. It is imperative that you keep paying your instalments for the loans on time so that the lender doesn’t have to sell the vehicle in order to get the compensation.
How much can you borrow? What are the rates?
For UK logbook loans, you can borrow an amount of £500 to £50,000 based on the value of your vehicle. The amount you can borrow depends upon the value of your vehicle and you will get only half of the value that is ascertained. The rate of interest for such loans is pretty high around 400% and higher for a certain period of time. Like for example, if you borrow £1500 for 78 weeks, then you might need to pay a total sum of £4250. The interest you have paid for such a loan must have been over £2750.
What are the situations that might prompt you to acquire a loan?
There might be a number of reasons which might prompt you to acquire a loan from a loan company. You might be going through such a financial crisis which will leave you with no option but to opt for logbook loans. Listed below are the two most common situations that are faced by the residents of UK that goad them to opt for loan:
With the increase in job cuts and reduction in salary, it has become increasingly difficult to pay the bills at the appropriate time. It is all the more difficult if you are on a job which involves hourly wage and due to the increase in job cut, people are less inclined to pay the appropriate amount which becomes difficult for you to sustain through the entire month. During such dire time, logbook loans are easily available and are an appropriate option because of the quick money it provides.
An emergency situation can arise in the life of anyone. It can be in the form of hospital bills due to some injury because of some accidents, a death in the family, the arrival of a new member, increased expenses or any such other emergency situation which might make you go for the loan. For me, it was the hospital bills that got to me and made me opt for logbook loans, despite my bad credit history.