Logbook loans are very expensive and risky. People are advised to stay away from logbook loans by considering alternatives that are cheaper and less risky. However, people going for logbook loans are out of options and need the cash urgently. If logbook loan is the only option on the table, here are some tactics that you can apply for extra value.
Look beyond the APR when picking a lender
The main focus when picking a lender for logbook loans dealer is the annual percentage interest. It is advisable to ensure you only select the lender with the lowest rate. However, you need to go beyond the APR and extend to other areas. For example, you should carefully look at the repayment schedule to ensure it rhymes with your monthly wage schedule. Other things to check for include hidden penalties that can raise the total loan amount by a huge margin.
Insist on getting a bigger room of flexibility during repayment
Many people going for logbook loans think that the loans are inflexible. However, many lenders such as JustLogbookLoan are very flexible and can make adjustments during repayment. Go through the agreement carefully and insist that the lender gives you payment flexibility in case of revenue inconsistencies. For example, if the lender has indicated that every payment must be made by 10th of every month, insist on a 2-3 weeks grace period to cater for delays in salary in case of unavoidable issues. You could also ask the lender to give room for renegotiation and adjustment of the amount paid every month with a small margin.
Focus on a specific problem and borrow the least amount possible
Once people realize they can borrow some cash against their cars, there is a tendency to go for the maximum amount as opposed to what one needs. This will plunge you deep into a bigger financial problem that can last for many years. Instead, you should maintain high specificity by ensuring you only borrow what will meet a specific need. For example, if you wanted £700 to cater for an urgent bill, why borrow more? By borrowing less, the overall interest will be low and the burden easy to shed off.
Ensure that the borrowed amount is repaid within the shortest time possible
The truth about any loan is that the more you borrow, the more you will repay. In the case of a logbook credit, the period greatly determines the amount you will pay by the close of the repayment session. Therefore, it is important to commit to repay the loan within the shortest time possible. Even if you have other types of credit, you need to weigh the inherent risks involved. For example, a borrower with a school loan that does not incur interest should give extra focus to the logbook loan. Note that this does not mean clearing other less risky loans should be pushed aside. Indeed, they are equally risky and pull down the personal credit score. To handle all the loans within a short time, it is important to draw a debt recovery plan that will help to clear all debts, raise credit score, and edge you closer to financial freedom.