Is Your Logbook Loan Payment Becoming a burden? Here Is What to Do to Avoiding Defaulting

Many people who take logbook loans end up defaulting because of the high-interest rates. Often, they have other loans, personal expenses, and emergencies to attend to that cannot be overlooked. If at some point you establish the burden is becoming too much, the best thing is acting promptly to avoid defaulting and sinking deeper into debt. Here are four most important things to do in such a situation.

Raise cash using alternative streams

Your logbook loan dealer is a business person, and the focus is getting regular monthly payments. Now, you should start thinking of alternative sources of revenue to augment the main salary. You should consider doing online jobs after work and direct the additional revenue to clear the loan. You can also engage family members in revenue generating activities. A good example is turning one of the main rooms in the house into a baking unit for the wife. You can also redesign a section of the house and rent it to generate some revenue.

The best area to try and generate additional revenue is the niche of specialization. This is because you have the expertise and new partners will value your input. For example, a mechanic with a local transport company who works from 8 am to 4 pm can look for a part-time job in a local garage.

Adopt the right austerity measures

Often, many people rarely realize they are overspending until a serious situation befalls them. If putting together the cash to service the monthly logbook loan is becoming a monumental task, simply take a walk through personal lifestyle and identify areas of austerity. Look at these examples;

  • Instead of driving daily to work, consider taking the bus and direct the recovered cash to clear the loan.
  • If you and your wife drive different cars to work, consider leaving one home and go to work together. This will save a lot in fuel and maintenance costs.
  • Change personal entertainment model. If you are used to visiting the expensive theatre every Friday, consider taking an annual subscription to online live streaming companies.
  • Instead of taking your meals from the most expensive restaurant, consider preparing meals at home and carrying it to work.

Visit a financial expert for professional advice

A financial expert is a professional who will help you to look at the logbook problem and entire personal debt issue from a broad perspective. However, many people rarely appreciate the benefit that a financial consultant can bring until it is too late. When you are experiencing difficulty repaying the logbook loan, a financial expert will help in the following ways.

  • Help you to draw a realistic debt repayment plan. This may involve clearing the riskiest loans such as the logbook loan first.
  • A financial expert can also help you take a financial management plan or debt consolidation and start a serious journey towards full recovery from debts.
  • Though a financial expert might charge a fee, he will assist you to envision the ultimate financial freedom. Once this becomes a lifetime goal, it will be only a matter of time before you can take charge of everything from the financial point of view.

Discuss the problem with the lender

Many are the times when borrowers think that the main objective of a logbook lender is to simply recover the car after defaulting. However, this is not the truth. The process of recovering the car is often complex and expensive. The lender has to engage third party recovery companies and auctioneer to sell the car. Even in the event that the car is sold, there is likelihood that it will not raise all the cash borrowed. This could trigger a series of lawsuits trying to follow the borrower for the remaining amount.

Because of these logistics that are very expensive, many lenders are willing to negotiate when a client is having issues. Before things get completely out of hand, talk to the lender for a complete review of the conditions. Some can even allow you a reprieve for a few months as far as they will be recovered. However, these adjustments often come with a penalty attached to them.

 

 

How to Keep Your Car Safe

A recent study has shown that the rate of car theft in the UK has significantly gone down. In fact, car theft is at a 20-year low according to statistics by the Home Office. While this is good news to many drivers, it is by no means a reason to be slacking when it comes to ensuring that your car is safe and secure at all time. Criminals continue to become more intelligent and devise even smarter ways to bypass all the security measures employed by modern drivers. Let’s look at methods you can follow in order to keep our cars out of reach of would be car thieves.

Where do you keep your car?

One of the main reasons why the stealing of cars continues to become more difficult is the incorporation of technology such as immobilizers and electronic locking systems which prevent the car from starting when the car keys are a distance away. However, it is still of paramount importance to ensure that the location where you park your car is also safe.

One of the ways to do this is to keep your car in a locked garage. In cases where you don’t have a garage you can park it in a driveway and provide ample lighting. This way anyone can see your car pull up. If you don’t have a drive way, you can still park it in a location in front of your house such as the side of the road provided there is also ample lighting. The idea is to always be in a position to see your car.

Keeping your car in a safe location also affects your insurance premiums. Someone who parks their car in a locked garage will pay less insurance compared to one who parks at the side of the road.

 

Do not draw attention to your car.

Sometimes car theft is an impulse reaction brought about by the realization of something of value kept inside the car. When a thief wants to steal your car what is the first thing they do? Well, they peep through the windows of course. If by some chance there is something they find interesting inside, they will immediately be motivated to break in and may end up taking both the car and the thing of interest inside.

A rule of thumb is to never leave items inside. Also do not leave clutter lying around as this may make the potential thief think that there could be something important in there.

When it comes to keeping your keys safe, do not leave them inside the car. When you do keep them inside the house, always ensure they are kept away from places where someone could access them by breaking in the house. That means away from doors and windows.

What about buying a used car?

Buying a used car as opposed to a brand new car come with its set of challenges. This is mainly because a used car may have a compromised security system depending on how old it is. This may also mean you will have to pay higher insurance premiums.

Certain organizations such as Thatcham give a ranking on the security of the car and this can be very valuable information when deciding to buy a used car. You can compare the score of different cars before choosing the right one for you.

Most car theft can be prevented by creating a routine that you will follow every time you are leaving your car. A routine develops into a habit and this will go a long way into keeping your car safe at all times. When exiting your car, follow the below steps every time;

  • Always lock the doors, windows and sunroof behind you.
  • Never leave anything in the car.
  • Do not keep things locked in the boot.
  • Take any car documents such as driving license and V5 document with you.

So there you have it. Easy ways to keep your car from being stolen. Most cars manufactured past 2010 have an inbuilt tracking system which the police can access in case it is stolen. You can also boost the security of your car by installing a tracking device that will always send information as to the location of your car.