If you think that getting out a loan when you are absolutely desperate for cash, securing said loan on your car which is your only form of transport and then paying back up to three time the amount you borrow is a good idea then you need read no further on this website.
Actually even if you don't think its a good idea you probably still won't get much from this blog as you are already aware that log book loans are such a bad idea that you wouldn't touch them with a barge pole. And that would be a good thing too because taking out a log book loan is a recipe for disaster in anybody's book. I really can't see myself ever being in any financial situation that I could need cash so badly that I could contemplate reaching for this credit product.
Monday, 8 June 2009
Tuesday, 2 June 2009
More Reason To Be Wary Of Log Book Loans
Apart from the high interest rates applied to log book loans there are other reasons to be wary of their use. By their very nature logbook loans are credit that is secured to a motor vehicle that is in your ownership and which has no or little outstanding finance on it.
The logbook lender will agree to give you a loan after valuing your car but the loan will no match even the trade value of your car. In fact you might only be offered half the trade value of your motor vehicle in cash. this not be enough for you if you were under the impression that because the loan was secured on the car you would be able to get something close to its market value in cash.
Having a secured loan has the major disadvantage that if you fail to keep up with repayments whatever you are using as security can be taking from you by the lender and auctioned in order that they can recuperate the cash owed. Everyone knows this of course before taking out a log book loan but many people fail to give it enough thought and don't understand the implications of their actions.
The logbook lender will agree to give you a loan after valuing your car but the loan will no match even the trade value of your car. In fact you might only be offered half the trade value of your motor vehicle in cash. this not be enough for you if you were under the impression that because the loan was secured on the car you would be able to get something close to its market value in cash.
Having a secured loan has the major disadvantage that if you fail to keep up with repayments whatever you are using as security can be taking from you by the lender and auctioned in order that they can recuperate the cash owed. Everyone knows this of course before taking out a log book loan but many people fail to give it enough thought and don't understand the implications of their actions.
Monday, 1 June 2009
Are Log Book Loans Perfect
Many people discover log book loans and think they might be the perfect solution to their financial problems, but like everything in life things are not so simple. Sure, logbook loans are quick and easy to get a hold of if you are the owner of your car but you have to weight up the positives and negatives before deciding if they are the right product for you.
When quick online application and money the very next day the advantages of this credit product are clear. The disadvantages on the other hand are less talked about. Log book loans have a high interest rate attached to them so you have to be aware that if you take one out you will have to pay back much more money than you borrow over the term of the loan. Sometimes this can mean you end up paying three times what you originally borrowed over a 2 year period.
When quick online application and money the very next day the advantages of this credit product are clear. The disadvantages on the other hand are less talked about. Log book loans have a high interest rate attached to them so you have to be aware that if you take one out you will have to pay back much more money than you borrow over the term of the loan. Sometimes this can mean you end up paying three times what you originally borrowed over a 2 year period.
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