What are Log Book Loans?
What are Log Book Loans?
What are Log Book Loans?Being in debt is never a desirable situation and nobody likes it. However, when times get tough, sometimes we go through a bad patch in our lives and suddenly instant cash is in desperate need to cover a new crisis. Even if your credit standing is bad and you cannot get a loan anywhere, and certainly in a hurry, there is an option open to you, and that is a log book loan. This type of loan is usually available to you, even if you have a bad credit history, or no credit history at all, or if you are in arrears on payments. There is no credit check.
There are generally no restrictions on the purposes for which you want to use the loan, and you can get the money almost instantly, within a few hours; as soon as you have been approved, the agreement will be worked out and payment arranged, you can get the money. It is usually on the same day.
This is what it is and how it works:
A Log book loan is a loan secured against your vehicle's value. This can be any vehicle including a car, truck, motorbike or caravan, as long as it has a logbook or V5C document.
There are typically three conditions to be eligible for this type of loan:
You must legally own the vehicle. It must be registered in your name.
The vehicle must be fully paid up. There should be no outstanding money owed on it.
The vehicle must not be more than eight years old.
The loan will be secured on this car and the amount you can borrow will depend on what your car is worth. Your car is offered as security for the money you wish to borrow.
This type of loan normally is intended to be short term, and consequently typically carries an extremely high interest. The terms and conditions, as well as the pay back rate and the amounts of each payment should all be made very clear to you before you sign up.
It obviously makes sense to be very sure exactly what interest is payable. Read all the small print. Most log book loans cost you considerably less if you are able to pay them back faster than the arranged re-payment rate. In other words, the quicker you pay back, the less interest you have to fork out. Be sure this option is available. It could save you a lot of money.
You are still permitted to use your vehicle while it stands security, but be warned, should you slip up on a payment you could lose ownership of it to the log book loan company. Before you come to a final decision about making use of this easy credit, consider whether it might not plunge you deeper into a debt trap that you cannot get out of. This type of loan is intended to help you over a short term genuine crisis.