Why do people go for logbook loans even though they are very risky and come with super high interest rates? Logbook loans are considered options of last resort after getting turned down by financial institutions because of poor credit score. The danger of taking of taking a logbook loan becomes evident when a borrower finds it difficult to keep paying high monthly rates.
For some people, this is the beginning point of their downfall, family breakdown, and loss of control. Immediately you default, a very high penalty is slapped on you. However, there is a lot you can do to raise additional cash for clearing the risky logbook loan. The following are expert suggestions that will help you raise extra cash, clear the logbook loan, and get out of debt completely.
Only pay the minimum for other loans and direct the extra cash to repay logbook loan
This is one of the main debt clearance strategies that experts advise clients to use with a high-risk credit. By meeting only the minimum repayment demand for most loans, the additional cash is redirected towards clearing the logbook loan because it is very perilous. You could negotiate with lenders to establish the minimum requirements or even discuss with them the best strategy for getting out of the logbook loan quagmire.
Get a bike and ride to work several days in a week
If you thought that options for raising cash are getting out, think again. The amount of fuel used on an average car in the UK is £ 2,300 per year. This is a lot of money that can be redirected towards clearing the loan. By considering riding to work several days of the week, you can redirect the saved money towards clearing the loan. Note that cycling will make you stay healthy and, therefore, could be used to cut the fitness club subscription. If cycling is not viable, consider taking public transport.
Make your own food and carry it to work as opposed to visiting a hotel
Many people end up using a lot of money at the hotel during lunch and tea breaks. However, think of the amount you can save by getting an alternative. Consider going for alternatives that are equally nutritious and reliable. For example, you can make food at home and carry it to work. Then, all the cash that was going to the hotel can be redirected to clearing the logbook loan.
Engage in a part-time job or open a side-business
In many cases, the cash people earn in the UK is hardly enough to meet all their requirements. Think of the mortgage you are paying, children school fees, loans, car insurance, food, rent, and other related costs. An additional source of income will come in handy to help you clear the logbook loan. Why not consider having a part-time job? For example, you could consider online jobs such as writing, consulting, surveys, or operate an e-commerce shop. For others, this could mean roping their spouses to engage in part-time tasks. A good example is involving your wife to run a baking shop. Take her for a short baking course, acquire baking items, remodel the garage, and open a website. Then, concentrate on selling the cakes to the local people and use the profits to clear the logbook loan.
Some people have started side tasks only for them to burgeon to fulltime employments and big companies. These options will not just help you to clear the logbook loan, but will also help to clear other debts and raise the credit score.