financial management

Is going for a logbook loan the solution?

When all is said and done, the truth of the matter is that having a poor credit rating can never be okay. I understand that many people say this to feel good about themselves but going by the number of disadvantages associated with having a bad credit rating, there is nothing good about having bad credit. You only get to understand this when you are pressed for cash or a phone contract and no one is willing to accommodate you. You feel as if the world has conspired to lock you into a mechanical mode of reaction impossible to resist.

You’ve approached countless lenders and each time the answer is “we are sorry but we can’t approve your application at the moment”. You are dejected, feel unworthy and feel as if you are being hanged to dry on a matter you had no control over. Then you hear about logbook loans and your curiosity is piqued. You even become more vested when you learn that your credit rating is of no consequence in the approval process. You heave a sigh of relief. You can’t believe how lucky you are. Your heart is beating at an unusual rate and you wonder whether it is the solution to your problems.

Well, to answer your concerns, a logbook loan can be the perfect solution to your problem and also a nightmare of sorts if not handled properly. First of all, let’s take a look at the solution aspect. The beauty of logbook loans is that the eligibility requirements are pretty simple and the state of your credit rating of no consequence. It is a secured type of loan where you basically sign over ownership of your car to the lender in return to the amount of money you need as a loan. So long as you have a car in good condition whose tax and insurance details are in order, you are almost assured of loan approval.

With that comes peace of mind, elation and an end to your financial problem. At last, you’ve found a loan product where you don’t have to grapple with the state of your credit score prior to approval. Your problem is sorted and you have a solution to whatever disturbed your mind on end. Well, all these is possible so long as you meet your end part of the bargain and promptly and diligently pay your loan on a monthly basis.

So what happens when the interest rates are so high and you seemingly can’t keep up with payments? That’s the headache, the beginning of your problems all over again. You see, logbook loans are given out on the premise that you will pay without defaulting. Falling back in payments for a couple of months could see you entering into a debt rut. Most lenders charge high penalty fees on defaults and within no time, you will find yourself deeper in debt. You have to contend with unwanted calls every now and then reminding you to pay up and within no time, you lack peace of mind.

As if that is not enough, you are constantly harbouring the fear of losing your car to the lender. Can you paint that picture in your mind? Well, to answer your question, if managed properly, a logbook loan can be a solution to your current financial problems especially if you have a poor credit rating. In fact, have been found to be quite instrumental in not only offering affordable logbook loans but also in according you professional advice on how to go about making logbook loans work for you. On the other hand, poor financial management could see you losing possession of your car. Make an informed decision! Will you?