The current economic crisis that seems to be affecting virtually every country across the globe has continued to put more families under financial pressure. Greece, Spain and Ireland are the worst affected with austerity measures really causing unrest among their citizens. The UK economy is still struggling to recover and the country is still in massive amounts of debts. As the recession continues, a lack of work will lead to our younger generation being in debt, meaning the impact will be felt for years ahead. A recent survey also conducted saw that 8 million people do not have any savings. In can be quite difficult to see any positives as unemployment continues to increase and living expenses only get higher. The last few years have seen many short term loan options now arise some of which can be helpful and others you really should stay clear of.
A logbook loan is one loan option that many people are not aware of.It works by the person wishing to take out a loan putting up their car up as collateral. The owner of the car uses their vehicle as security to secure the loan. In the event that the loan is not paid back in full then the logbook loan company gets to keep the vehicle which can be sold to recoup the unpaid loan amount. A logbook loan is really a short term loan option and it is advisable to make sure that the loan is repaid back quickly. Most people who consider short term loans are usually unable to get financial assistance by any other means. Banks can be extremely strict on granting loans in the present economic climate and let’s not forget the economy is in this situation because loans were granted to people who really had no way of paying them back.
Benefits of a logbook loan
There are several benefits that a logbook loan can offer which makes them an ideal option. These include;
- No credit checks
- Instant approval
- Cash available in less than 24 hours
- Payment plans to suit your needs
- Continue to drive your car whilst you repay back the loan
- No early settlement fees
A logbook loan does not require a credit check simply because your car is used as security. The company is only concerned with having the loan paid back so should you fail do this, they simply repossess you car.
Annual interest rates are approximately 400% so be ware that these loans are short term loans. Similar to a payday loan, they offer a quick cash loan to cover you for a few weeks or months. If taken out for the longer term then interest rates will be extremely high. None the less compared to payday loans where annual interest is 4000%, a logbook loan is a far better solution.
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