4 Great Things That Logbook Loan Lenders Can Do For You

Logbook loans are loans advanced against your vehicle. The owner gives away the ownership of the car to the lender until the entire loan is paid. When compared to conventional loans, logbook credit is very expensive. In fact, people are advised to consider it as the credit option of last resort.

A closer check at most logbook lenders in the UK reveals that they have very high APRs (annual percentage interest). Some charge as high as 400% APR. But this is not the only risk.

  • There is a risk of getting the car taken away in the case of default
  • The danger of sinking deeper into financial turmoil
  • The peril of losing the family car (car is the 2nd most valuable asset after house in many homes)

While these risks are indeed true, you can still enjoy a stress-free repayment period by selecting the best logbook company. Great lenders understand their clients and are willing to go to great lengths to help. Here are four special things that a logbook loan company can do for you.

Adjusting the APR

The interest rates of logbook loan companies are very high. That is true. But it does not mean that they are fixed! Logbook loan companies are in business and will not agree to lose clients because of the interest rates. Talk to them, and you will realize how ready they are to adjust the APR downwards. Here are two common methods of getting your logbook loan APR adjusted downwards.

  • When applying for the loan, check for companies that have lower rates and ask the preferred lender for lower rates.
  • Put forward a proposal for lower rates. If the lender is giving his loan at 299% APR, put forward an offer of a lower rate such as 270% APR.

Assisting you to avoid defaulting

Defaulting on agreed repayment schedule of the logbook loan can be very expensive. The penalties are too high and could easily skyrocket the total repayable amount to very high amounts. However, logbook loan companies are not interested in penalizing you or even selling the car. Most of them want to strengthen their brands by helping clients to stay on the payment schedule. Here is how the lenders can help you avoid defaulting.

  • Automating monthly deductions so that you will never miss on repayment
  • Creating a reasonable repayment period (for example, if your salary is late with a week, there is no penalty attached to short inevitable delay).

Anchoring you from falling into financial abyss

Notably, many people go for logbook loans as an option of last resort. But the loan is not a guarantee that things will ease up immediately. In some situations, things have even become worse. But the lender is there to help you from sliding into a financial abyss.

Take a situation where a borrower borrows ‎£3,000 against his car with a total value of £7,500. After paying the loan without delay for three months, he loses a job and does not see any other way to continue making payments. In such a situation, you simply need to talk to the lender, and he will assist you in the following ways;

  • You agree that it is no longer possible to continue meeting the monthly remittance. This will help to avoid unnecessary penalties and charges.
  • The lender and borrower may agree to sell the car so that the lender gets his cash and you can take the excess.
  • Because you already have the car, the lender can task you with the role of getting a buyer. This means that you can negotiate with the highest bidder.

Helping you improve personal finance skills

Many logbook loan dealers are financial experts while others employ top brains to help their clients. The experts will help you to understand the current situation and identify methods of edging towards financial freedom. Talk to your lender for assistance with budgeting, improving credit score, and investment.

While logbook loans have won a very negative tag in the market today, you can still get more and emerge stronger. Remember that everything starts with picking the right logbook lender.

 

Excellent tips to help you repay your loan in time

Acquiring a logbook could be really easy. Paying it on the other hand is something entirely different. Sometimes, it’s better not to take a loan at all than failing to pay one. Well, you already know the consequence of not meeting the stipulated repayment deadline. You will definitely lose your car and probably face more money challenges. That is why you need to do everything in your power to pay back your loan in time. This easier said than done though. Thankfully, you are in the right place. Below are some great tips to help you in repaying your loan before the due date.

Make use of your bonuses

In order to meet your repayment deadline, you are going to have to put your income gains into good use. Instead of buying that new gadget, why don’t you redirect your extra money towards paying your loan? In case you do a contract and happen to get a generous tip, don’t just spend it all at once. At least dedicate a part of it to your loan. Do this for every bonus you get from now on as you continue with your monthly instalments. Although it might seem difficult to let go of that extra hard earned cash sometimes, doing this will help shorten your repayment period. Try it and see for yourself!

Refinance your loan

Another great way of repaying your logbook loan is by refinancing it. There is no better way of clearing outstanding debt than by using this method. Refinancing involves taking another loan in order to pay for the first loan. The new loan now becomes what you need to pay off and is usually subject to a lower interest rate. Therefore, you eventually end up completing your logbook loan instalments and begin concentrating on another loan.

Despite all that, you need to be really careful with this method. It is usually better to refinance during the early or middle stages of the repayment period so that you can pay an overall cheaper amount in the long run. So, remember to research on other available loans even after you have taken a logbook loan.

Lower your living standards

Apart from refinancing your loan, you should also consider lowering your living standards in order to repay your loan in time. For instance, you could move to a more affordable house, especially if the loan is really taking a toll on your finances. Just think about how much money you can save on the rent. All of that can be directed to clearing your loan and free you from debt.

Moreover, you could also try to adjust your lifestyle to a lower income. Get rid of any subscriptions that you know you’ll survive without, especially online. Additionally, consider public means of transport in order to save on fuel. By adjusting your lifestyle to a lower budget, you should be able to save enough money to pay your loan in time.

Redistribute your payment

Have you ever thought of distributing your loan payment into more instalments? Note that, the more instalments you have, the less the amount you will have to pay for each. Therefore, try to break down your payment as much as possible. You could decide to make weekly payments for example. By doing so, you will have the responsibility of hassling for only a quarter of the monthly instalment you had previously chosen to pay earlier on. It doesn’t have to be weekly only. It could also be bi-weekly or tri-weekly. Just choose what you are most comfortable with. Redistribute your payment in such a way that you can pay your instalments with minimum stress.

 

Tips for dealing with debt collectors effectively.

Once you fail to pay your loan, credit card or utility bills for a long time, a debt collector may be called upon to deal with you. This is especially when you don’t contact or respond to your creditors. Being contacted by a debt collector is an embarrassing prospect for many people that should best be avoided. In such a situation, settle your debt as quickly as possible, since it will only get worse when ignored. However, you need to know how to handle debt collectors effectively to pay off your debt and avoid getting exploited. Here are some tips to do just that.

Know your rights.

Some debt collectors may resort to underhanded methods to get you to clear your debt. It’s therefore prudent to know just what the debt collector can get away with. Under the Law, you are accorded specific rights in the debt collection process, and the debt collector is required to follow certain protocols. For instance, debt collectors should give you at least 30 days of breathing space (no calling or letters) or engage in harassment. Creditors shouldn’t even call you at unreasonable times such as when you’re at work without permission. Knowing these rights will enable you to know when your rights are being abused and take appropriate legal actions.

Record all correspondence.

Don’t delete any voicemails received from the debt collector and keep notes on the phone conversations received. Be sure to note the date and time of the call, the collection agency and the amount stated. The same also goes for any written letters or emails sent to you by the debt collector. Additionally, ensure you request for written confirmation of any agreement made over the phone to act as proof. Maintaining meticulous records will allow you to keep track of the progress yo vu make in your debt repayment, and any foul play on the part of the debt collector can easily be ascertained.

Consider your credit report.

It’s a sad fact that any debt collection will not go away once you clear the debt. The collection will stay on your credit report for years and greatly impact your credit score. To mitigate this effect, ensure the debt in the credit report reads ‘paid in full’ after you pay so loaners may look at it more favourably. You can also have the collection item removed by contacting the collection agency and asking for a ‘pay for delete’ deal. This is where you incur a certain amount of money to have the record of the debt totally cleared from your account.

Say little and stand firm

Once the debt collector calls, try and keep the conversation as short as possible. Such a call is just like an interview. They’re trying to interrogate you and determine a lot of things from it i.e. if you’ve got the capacity to pay. The phone conversation could also be recorded for evidence purposes so try and keep the conversation as short as you can.

How to Limit the Use of Your Credit Card When Grocery Shopping

One of the biggest – and perhaps, the most important – expenses that people make is food. When planning a budget, food is almost always one of the items that you don’t want to leave out of your list. People need to eat, there’s no changing that. What you can change, though, is the way you go about procuring the most basic of all human necessities.

Here are some of the ways you can rely on your credit card less often when doing your groceries.

  1. Create a meal plan. Planning is the key to success, and that applies to the food you eat. Don’t go about putting things in your shopping cart and making decisions about what delicious meal to cook on the fly. Planning your meals is not only a potentially healthy habit, but it also keeps you from spending too much unnecessarily. Knowing what you’ll have for breakfast, lunch, or dinner allows you to plan your budget and buy only the ingredients that you need, and no more. Then bring just enough cash with you to the grocery store and leave your credit cards at home.
  2. Shop less. If you don’t go to the grocery store, you don’t risk being tempted into using your credit card. Make sure to get everything you need from the grocery store for the next few weeks or so in one visit and avoid having to make a return trip. Coming back to the grocery store for something you forgot to buy will almost certainly end up with you coming home with more things you don’t really need just so you can fill up your shopping cart.
  3. Only bring cash. At the risk of stating the obvious, bringing just enough cash to the grocery store for your needs keeps you from having to depend on your credit cards while also preventing impulse buying. Following your meal plan should give you an idea about just how much money you need to take with you for groceries, so that you don’t have to use your credit card.
  4. Take advantage of sale items. Be sure to stock up on all the items you need whenever they go on sale. Commodities don’t go on sale all the time, so when they do you need to be sure you’re ready to take full advantage. But consider the product’s shelf life too, otherwise you’ll end up with boxes of breakfast cereal that you can’t eat because they’re already past their expiration date.
  5. Buy what you need in bulk. A five-liter container of milk costs more than a one-liter carton. But, if you go through five liters of milk in a week, getting the larger five-liter container makes more sense than buying five individual one-liter cartons. Bulk buying lets you get the same amount of a product for less money, making it easier for you to use cash instead of your credit card.
  6. Avoid pre-cooked meals. Aside from pre-cooked meals having potentially harmful preservatives and other chemicals, they also cost more than home-cooked meals. While it does take a little more time and effort to cook before you eat, it does save you a lot of money. You won’t need to use your credit card to dine out or to buy instant food.
  7. Store your food properly. Food that has gone bad is money wasted. Make sure that all perishable food items are either consumed or put in proper storage. This extends the food item’s shelf life, and in turn, prevents you from buying more groceries with cash or your credit card.

 

How to Get Rid of Debt for Good

Little debt can be helpful in achieving some of your goals and keeping your credit score in check. However, when it comes to the point when your debts are giving you a hard time coping up with your finances, it’s obviously time to get rid of them for good. Here’s how.

Build Your Emergency Fund

Of the most common reasons why people end up having too much debt in the first place is the absence of emergency fund. If one thing is certain in life, it’s that emergencies do happen. If your car broke down, you got sick, or lost your job, that’s where your emergency fund comes in to save the day. Too bad many people do not anticipate these things, and then resort to debt as a means to tackle their financial emergencies.

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If you’ve already acquired too much debt now and are already struggling, you may argue about paying off your debts first. But what happens when another emergency strikes again? This is why setting up your emergency fund should be prioritised. If you’re cash strapped, you can start little by little. Setting aside even 5% of your income for your emergency fund can go a long way.

List Down All Your Debts From Smallest to Highest

While it may be most logical to get rid of your debts with the highest interest first, famous radio talk show host Dave Ramsey thinks otherwise. He strongly believes that the best way to build momentum is to snowball your debt repayments, in which you start paying off the smallest debt first and pay only the minimum amount to your other creditors. This way, you can add the money previously set aside to pay off the smallest debts to your larger debts. He also argues that people are more likely to commit to debt repayment if they see results quickly, no matter how small.

Reduce Your Monthly Outgoings

Another important point to remember when you’re paying off your debts is to try to spend as minimal as possible, as it will be difficult to set aside money for your debts when you’re not spending below your income.

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Start recording your expenses and see where you spend your cash the most. Categorise your spending into food, transportation, utilities, etc. Set a budget for each category, and use the envelope method if necessary. Once the money in a certain envelope is all spent, spending on that category should be stopped until the next paycheque. It is important to set reasonable amounts for each category to make sure you don’t fall short.

Find Another Source of Income

One of the reasons why people fail miserably at debt reduction is because they simply do not earn enough. While many people may argue that it all depends on proper budgeting, sometimes there simply isn’t enough cash to manage. If, despite all your efforts, you still see yourself struggling paycheque after paycheque, then it’s high time to seek another income source. Whether it’s a second job or some simple side gigs here and there, this can help alleviate some of your financial shortfalls at least until you’ve paid back all of your debts.

Seek Professional Help

Lastly, if all else fails, maybe you simply have to accept that your debt problems have reached to the point that you can no longer manage them by yourself. Do not be ashamed, because a lot of us have dealt with financial troubles from time to time, and it’s not true that your problems are beyond repair. The key here is to acknowledge when professional help is to be called for. Allow the money experts to help you, follow their advice diligently, and then commit not to repeat the same mistakes.

Whether You Save or Get a Debt, the Banks Benefit

At no time will a bank decline your request to save money. Banks readily welcome you to save money as well as to get debts. You will never get a decline for your request to save money because the bank intends on using your savings to gain profit. In as much as the bank gets profits when you take debts, it on cases declines applications by some to get loans. This is because it wants to minimize risks associated with borrowers who seem unreliable especially with making timely payments.

Savings from customers to the bank is a simple concept that not many have been paying a keen attention to. While many think it only benefits them, it benefits the bank too in a large measure. When you open a savings account, the bank staffs are happy. Banks usually rely on deposits to offer loans. When a loan has huge deposits, it is able to advance more loans. This is because it has a large reserve and can accommodate dispensing more funds and thus growing its loan book. When you save money, the bank promises a certain percentage in earnings to your account for making the savings. Many savings accounts have restrictions as to the withdrawals the account owner can make. This helps keep the funds acting as the bank’s trading cash.

When the bank loans money to borrowers, the money is repaid at a certain interest rate. This interest rate is quite higher than that offered to those making savings. The difference between the two interests is the bank’s profits. This means that the bank usually get a high profit from the money they use to trade.  Even with the banks expenses in costs associated with maintaining the banks operation, they still get to keep a good amount of cash that helps them expand their business even opening up new branches. Whether you choose to save or to take a loan, remember that in both ways the bank still gets to benefit from what you need. However, the biggest benefit comes when you choose to take up a loan for your needs.

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How to Get What You Want and Still Have the Financial Advantage

There is no right answer as to which is the best way to obtain cash for making a purchase. With different kinds of loans in the market, many usually get stranded as to which option to go for. There being no right answer as to which is the best option is caused by the different capacities each individual holds. What may be good for you may not be good for another person. The only solution is in getting to understand how each means works and identifying which one suits you best.

Regardless of the terms you find available, you should not always rely on what your seller puts out to you. With a competitive market in the world, you can always compare what dealers handling a similar kind of financial service offer. You will be happy to find out that there are always some who are willing to lower their rates so as to attract customers while still offering quality services. While one trader may have a focus on offering quality at a high rate to get profits with the few customers he will get, there is always another still offering quality but at cheaper rates counting on getting more customers to maximize on profits.

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Using savings is a more advantageous option. But not many are able to use savings to buy such items as cars or a home. The best option when it comes to buying such high priced assets is to include savings along with borrowing cash. Let your financier know that you are ready and willing to contribute a measure of cash for the purchase. You can contribute a 20 or 30 percent of the total cost required for the asset. This will mean you will have a lower loan balance than it would have been the case if the lender was financing you 100%. The lender will also offer you a lower interest rate on the financing advanced due to the contribution put in.

The market has other options like higher purchase as well as personal contract purchase. Higher purchase is just like taking a loan for a car and having the car attached to the loan. Payment is made monthly and failure in owning the terms leads to loss of the property. On the other hand, a PCP offers different terms. You have to pay a deposit for the asset and keep paying subsequent installments for the asset for 2 to 3 years. On paying an amount equivalent to two thirds worth of the asset, you are given options to return it back, finish off the payment, or trade it in.

Throwing a Holiday Party on a Budget

Holiday parties are a great way to celebrate the season with friends and family. If you are in charge of throwing one of these, you may have started to feel overwhelmed with all that it is going to cost you in order to host it. Fear not, there are plenty of ways you can have a great holiday party while staying within a budget.

The first thing you want to do is plan ahead of time. Come up with a list of all the things you are going to want at your party, and figure out how much each is going to cost. Compare that with the amount you are willing to spend, then cut back as necessary. Try to stick as close to your budget as possible during this planning phase.

To save money on the things you’ll need for the party, there are a few things you can do. First, don’t feel like you have to go overboard with the decorations. A few decorations around the room will be enough. All you have to do is make the room look festive. People aren’t there to look at your decorations, they are there to have a good time with loved ones. Secondly, don’t spend too much on invitations. If you are going the traditional route, you don’t need to buy expensive invites to mail out. Simple ones will do, as these are mostly likely going to get thrown out eventually anyway. So save even more money, create an invitation online and send it to people’s emails or through social media. It’s a great way to keep track of how many people are coming and to reach everyone at once.

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            Another thing to consider is the food you are buying. Don’t buy food that is out of season just because it looks nice or is in a certain recipe. Consider what foods are cheapest this time of year, and plan your menu accordingly. When doing your shopping, make sure you compare different stores to see what kind of deal you can get. You’d do the same thing with any other purchase, so don’t feel like you have to buy all of your food at one store.

Lastly, if you have a lot of people coming, it is not uncommon to ask them to help out. If every person brings some sort of dish, or something along the lines of utensils, the cost for each person will be low. This way you don’t have to worry about shouldering the entire burden on yourself. Most people want to help out if they can, so all you have to do is simply ask them.

Hopefully with these tips you can throw a great party without spending all of your money. Remember that the holidays are a time for being with loved ones and having a good time, not putting yourself into debt. Don’t feel bad about cutting a few corners on your party. Your primary responsibility is to ensure that people have a good time, and you don’t need to spend a lot to do that.

Simple Ways to Make More Money

We could all use a little extra money in our bank accounts at the end of each month. Whether it be to help you pay some bills, or just so you have a little more money to spend on yourself, more money is always nice. If you find yourself struggling each month to get by, and you are looking for ways to get a little bit more cash, below are some simple tips to get you started.

  • The first advice we can offer is to try and make more money at your job. This means either asking for a raise, or offering to work more hours. While a raise may be easier said than done, it can’t hurt to ask. If you have been a reliable employee for a decent amount of time, then the company will likely consider giving you the raise you ask for. If not, consider working overtime a couple of hours a month to make a little more money.
  • Secondly, if you can’t make more money at your current job, consider getting another. This means either applying for a better job to replace your current one, or to take on a second job. Even just a couple hours a week part time at another location will really help pad your budget at the end of the month.
  • Don’t want to work at another job? Consider starting your own business. You probably have a set of skills that are marketable, and you can provide them to others for a fee. Maybe you can start a business where you do handiwork at people’s homes, or you can start a business where you plan parties for people. Think about what you are good at and try to come up with a why that you can make some money from it. This strategy will take a bit more time to implement, but it could be very lucrative in the future.
  • Another option is to have a garage sale. You probably have a lot of useless junk piling up around your home. While each item by itself might not fetch much, if you sell a lot of them you could have yourself a nice sum of money when you are done. This is not a sustainable option, since once you sell everything you are done, but it is a nice option to get some cash for this month.
  • Lastly, if there is simply no way to increase the amount you are bringing in, your other option is to reduce the amount you are spending. This will have the same effect as adding to your income. If you don’t already, prepare a monthly budget that includes everything you spend and everything you earn on it. Go over it carefully and think about where you can afford to cut back a little. Maybe taking public transportation a few times a month instead of driving will save you on gas, or maybe you can have a few more meals at home instead of eating out. If you can cut back on the things you don’t really need, you’ll have more money left over from your income to spend it on the things you do need.

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Personal Finance Tips for Overseas Travel

The holiday season is almost here and you might be planning to spend yours abroad. That’s very exciting and wonderful. If I were you, I’d probably already start packing now. But as much as you itching to jet off, there are key things you must take care of first. So let me wish you a safe and smooth trip while also urging you to check the personal finance tips below to still save money while having the best time of your life.

Get in Touch with Your Banks

When planning a vacation overseas, one of the first things majority of people do is plan their itinerary often forgetting the more important which is the financial matters. Don’t commit the same mistake by shoving this at the bottom of your priority list. Make sure you speak with your bank before leaving. Otherwise, you may risk your account being frozen. Just inform the bank that you’ll be overseas and will use your bank or credit card while there.

Open Online Accounts

If you want to keep a tab on your overseas spending more efficiently and conveniently, you’d want to open an online bank account. This will allow you to check your balances, funds, transfers and charges. You get to see your recent transactions thereby allowing you to stay on top of your finances.

Obtain a No Foreign Fee Credit Card

If you have time to spare, getting a no foreign fee credit card will save you a lot of money when travelling abroad. It is estimated that more than 90% of credit cards have hefty foreign usage fees. You might want to inquire with your issuer about said fees but you’re also better off applying for a specific credit card designed for overseas travel.

Make sure to take care of this a few months before you plan to travel. You can use the card to book flights, accommodation and activities. Foreign fees do not apply when you do which will leave you with more money to spare for souvenirs and shopping.

Bring Cash and Debit Cards

While your credit card should be enough to cover your expenses, you’re still safer when you prepare multiple forms of payment. It’s wise to open and bring a low to no fee debit card abroad. Withdrawals won’t be charged with high fees that can cost you.

Also equally important is to bring sufficient cash when travelling abroad. Just make sure that you convert only the amount you need and not all of it at once. Cash will come handy for cab fares, small purchases and on stores which do not accept credit or debit card charges.

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