In times of turmoil, people tend to look for any solutions that might help them get over their financial ordeal. Maybe you are short on cash by the end of the month, or you need to repay a debt that is immediately. Before delving into anything, you need to apply the proper financial mindset to your decision. A logbook loan is an easy way to get cash instantly, but some aspects need to be considered regarding this option.
- How a Logbook Loan Works:
A logbook loan is a loan that you apply for with the value of your car. You simply sign off the ownership of your car to the lender, and you get an estimated amount of money in return. You get to keep using your car throughout the time you repay your borrowed money, but the lender is basically the owner of your vehicle until your debt is reimbursed. The only downside of a logbook loan is that, if the payments of your debt are not met, the lender will seize your vehicle. The interest rate of such type loans is tempting to lenders, and that is why you should reconsider your situation before applying.
- Should You Apply for a Logbook Loan?
When times are tough, you look for any financial solutions to overcome your ordeal. It is understandable. However, you should reconsider this option over and over again. First of all, your vehicle might be seized if your debt is not paid. That would be a huge hit to your financial situation. Second of all, you are probably dealing with financial difficulties due to poor financial management. A logbook loan is an easy way out; and making a habit of it would be a terrible decision.
- What Are the Alternatives to a Logbook Loan?
Considering your situation, you need anything that might help you overcome your problems. You might want to look into applying for a short-term loan. Here at Credit Poor, we work as a broker to find you the best payday loan deals possible. We have access to many dealers, and we assess each client’s case separately to determine which lender is most suitable. Our short-term deals might be a good alternative to a logbook loan, as we find you lenders that demand the lowest interest rate possible.
Other alternative that you might look into is contacting your family members and dear friends. People who are close to you might be willing to help out in times of turmoil; and that would actually be the best options for you, as you would not risk your vehicle or deal with the interest rate of lending services. You might also want to contact your employer or the company you work for to ask for an advance payment of your monthly wages. Some companies understand the situation of their employees and offer this privilege. If it is possible, estimate your financial needs and try to save money as best as you can for the month you would not be getting paid for. Contacting the company or the party that you owe money for might be another option. They usually find way to mediate your situation if you are willing to pay, and offer alternative payment arrangement to suit your financial difficulties.
A logbook loan works for some people, but it is considered a risky kind of loan. Try to make smart decisions regarding this option, and reconsider your alternatives over and over again to make sure that you are taking the best step towards financial stability.