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The Ultimate Smart Guide to Logbook Loans

Are you hoping to avail an affordable logbook loan? You’re lucky because we have here a quick guide to logbook loans. We’ll tell you everything you need to know about the financial product so you can make a smart decision in the end.

What are logbook loans?

Logbook loans are personal loans available for vehicle owners. The loan is a secured loan that requires a security or collateral. In this case, the collateral is the vehicle. The loan will be secured against the vehicle allowing the borrower to translate the value of said vehicle to cash in a matter of 24 to 48 hours.

Who is it for?

Logbook loans are for borrowers who can otherwise avail a personal loan because of bad credit. If you’ve been struggling to get a loan because you have a history of default, logbook loan is one alternative you can check out. As long as you’re a vehicle owner and you live in the UK, your chances to get a logbook loan are pretty high.

What are the requirements?

Because logbook loan providers do not run credit checks, the requirements are simple and basic. Of all the requirements, the most important is your vehicle. It should be free of any financial plan and ideally the car should be less than ten years old. You’ll just need to provide documents such as your car’s V5 document, MOT certificate and insurance to get started with your logbook loan application.

How much can you borrow?

With logbook loan deals, you can borrow between £500 up to £25,000. Some providers may offer as much as £50,000. The maximum amount you can borrow will depend on your vehicle’s trade value. Your lender will also take into consideration your monthly income. Even with bad credit, you can borrow a larger loan amount with this type of deal because of the collateral involved.

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How long does the repayment term last?

Repayment terms are also longer for a logbook loan deal than any type of unsecured personal loan. In general, you can repay your logbook loan between 12 months up to 36 months. You can also choose to repay your loan weekly, bi-weekly or once a month. Either way, you’ll have greater flexibility to adjust your repayment terms according to what’s most comfortable for your financial situation.

How much is the interest rate?

One of the major downsides with logbook loans is the potentially high interest rate. Because it’s specific for people with bad credit, the financial product comes with a hefty interest rates as a way to lower the risks on your provider’s part. The typical representative APR for a logbook loan is 400%. It may be less or more but either way the cost can be steep for any borrower. This is why extra caution is advised for borrowers looking to resort to a logbook loan to meet any financial emergencies.

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How risky are logbook loans?

Aside from the high cost, a logbook loan deal is even riskier because it’s secured on your vehicle. When a personal loan is secured on an asset, there’s always that possibility of repossession. The moment you signed the credit agreement, you agree to the possibility that you lender will recover your vehicle if you did not repay the loan. After several months of nonpayment, your lender will use the credit agreement to repossess your vehicle. Then they’ll use the bill of sale document to sell your car to cover for your loan balance.

 

 

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Personal Finances Tips for the Millenials

If you’re a millennial, you’re not new to instant gratification. In fact, you may live life with instant gratification at the center of your universe. That’s not hearsay but truth for many of us millenials. Which is why it’s hard for millenials to achieve financial freedom. But it’s not impossible either. With the right mindset and habits, you can get ahold of your finances successfully. To help you along, here are some personal finance tips that might help:

Learn to save first

Saving for the rainy no matter your age or lot in life is a must for financial success. While saving is not as gratifying as a shopping spree, it does bear fruit you’ll reap for a long time if you stick with the habit. So even if it’s a hard habit to master, do it anyway if you want to survive financially. Save first by deducting it immediately off your paycheck. Then budget what is left for expenses and the essentials. If you still have left after expenses than you can indulge for a shopping treat or a luxury knowing your savings safe and intact.

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Learn to say no

Saying no to instant gratification is a constant struggle for majority of millenials. This is why most of these people don’t have enough savings set aside for the long haul. This is also why you need to start learning how to say no starting today. Remember that life isn’t all about pleasure. If you keep giving in to the temptation of instant pleasure then you’re risking a future that’s full of financial hardships. Learn to say no today and you can expect a better future at least financially.

Focus on the future

One of the dangers of living in today’s day and age is our overt focus on the present. We all want instant success, instant pleasure and instant money. Real life, however, doesn’t work like that. To understand the value of life-changing habits like saving, you need to shift your focus from the present to the future.  By focusing on the future, you’ll be able to adjust your financial decisions and habits in a way that will benefit you most come retirement time.

Set financial goals

No matter your age or where you’re at in life, financial goals help. Realistic financial goals, in particular, will direct you to the right financial path. Set both short-term and long-term financial goals. Short-term goals will help you get through the present challenges and long term goals will keep you going until you’ve achieved your financial goals.

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6 Personal Finance Lessons You Can Learn from Self-Made Millionaires

Financial freedom may be as elusive for many of us ordinary people but if self-made millionaires can do it so can you. Becoming a self-made millionaire is certainly no easy task. I imagine the journey could be challenging, full of complications and requires a lot of hard work. But it’s possible that’s for sure. Just like with anything else in life, if you’re really serious about financial freedom and you’re willing to work hard, you can accomplish it like self-millionaires around the world have done it. In fact, you might as well learn from them. Here are some personal finance lessons you can learn from self-made millionaires:

Figure out why

You’re not going to work hard for something unless you have a strong enough reason why you’re doing it. Why do you want financial freedom? Is it only because of the money or is it for a greater good like inspiring others do the same? Is it only for yourself or are you doing it for your family? Find out why you want financial freedom and use it as inspiration especially when the going gets tough and it will get tough for sure.

Commit to work harder than anyone

One of the reasons why self-made millionaires are millionaires is because they are willing to work harder than the majority of people. Financial success is no easy task. That’s one thing you have to keep in mind all the time. If you want financial freedom, you need to be ready to work hard for it and commit to continue doing so until you’ve reached your goals.

Keep on learning

Constant and continuous learning is another personal finance habit self-made millionaires have mastered. They never stop learning. In fact, these people continue to invest in themselves paying for seminars, attending conferences and trainings to make them even better at what they do. If you do fail or commit mistakes at some point, don’t beat yourself. Instead, get up and learn from those mistakes. That’s exactly what a future self-made millionaire would do.

Develop the right financial habits

In order to ensure a sustainable financial success, you need a strong foundation of the right financial habits that will become part of your lifestyle. Habits like saving money, living below your means and postponing instant gratification are some of the best habits you should master. The trick is not only to work hard but to work hard and smartly. By developing the right habits, you’ll have the street smarts to easily achieve any financial goal you have in mind.

Associate with the right people

Achieving your financial goals is easier when you have people who can inspire you and whom you can learn from. Considering that the journey to financial freedom is never easy, you need to associate with the right people. It should be a conscious effort to look for people who thinks like you and who understand where you want to be. In the same manner, you need to steer clear from people who are time-wasters and who want nothing else but instant gratification.

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Help others do the same

There’s nothing more satisfying than accomplishing your financial goals and helping others do the same. Self-made millionaires are successful and thriving because they don’t stop when they’ve achieved what they’ve set their minds to do. They go the extra mile, offering people who aspire to accomplish what they’ve accomplished with time tested advice, expert tips and more. In the end, if you help others achieve their personal financial goals, you’ll be doing yourself and the world a whole lot of good.

 

 

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Why Saving Money Can Change Your Life

The road to financial freedom is rarely easy. It’s filled with complications but personal finance is something you need to focus on regardless. Unless you want to live life constantly worrying about finances, you need to master the one habit even self-made millionaires attest to have changed their lives for good. And it’s the habit of saving. Here are some of the ways saving money can change your life too:

Saving lets you pay yourself first

When you save money rather than indulge in shopping sprees or impulsive purchases, you’re basically paying yourself. You’re not only thinking of what instant gratification you may enjoy but you’re thinking of the future. To prioritize saving more than anything else, you are like giving yourself a tap on the back for working hard. As payment for such hard work, here’s some savings to guarantee your future. Nothing says paying yourself best than that.

Saving comes handy during emergencies

When you have sufficient money in the bank, you never have to worry about financial emergencies. Whether it’s as unexpected as your car breaking down or something major like a medical emergency, your savings can come handy to take care of these things. Money saved for the rainy day eliminates the need to borrow personal loans with high interest rates. Saving money no matter where you look at it only offers advantages you’d benefit most from anyway. So you should save money not only to take care of the future but also of financial emergencies.

Saving sets you up for financial success

When you’ve developed the habit of saving and it’s become a part of your lifestyle, financial success is on the horizon. Self-made millionaires have confirmed it and financial experts reiterate it time and time again. If you know how to save, you’ve set up yourself for financial success. Before you can enjoy financial freedom, you need to save first in order to have enough money to invest to high-paying investment products, a business and eventually for your retirement.

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How to effectively save money?

Now that you’ve confirmed that saving indeed can change your life, the next question to ask is how to save money? Saving money on paper seems like an easy habit to master. But it’s really not when you’re confronted and bombarded with irresistible store sales and deals, insufficient income, financial emergencies and more. If you badly want financial freedom, however, there shouldn’t be any excuses to keep you from doing what’s needed to be done.

If you’re ready to save money, there are really only two things you need to keep in mind. Prioritize it more than anything and make it automatic.

To effectively save money, you need to do it first thing when you receive your income. When you’re making a budget, saving should occupy the first item on your list. Saving doesn’t have to be big to get start. You can start off small like setting aside 3 to 5% of your income to savings. You can increase the amount as you go. Just make sure that you’re saving consistently month after month.

To make it even easier to save money, you can tap on your bank’s automatic deduction feature. You can open another account and set-up an auto-debit transaction per month. As soon as you’re income has been deposited to your account, the bank will deduct the appropriated amount and transfer it automatically to your savings accounts. This makes savings a whole lot more convenient. Soon enough, you won’t notice the deduction and it will be easier to live with what’s left of your income after savings.