The number of people borrowing logbook loans and finding themselves in trouble has risen sharply in the last decade. Some often get late with payments while others have their vehicles taken away and sold to recover the loan. These are not the only problems. Many are those who take the loans but live with a lot of stress for the entire repayment period. However, you do not have to get into any of these problems when you use the following tricks.
Make sure to look for the right logbook company
The first step in staying away from trouble is selecting the logbook company carefully. In the last 20 years, the number of logbook loan companies has grown tremendously. You should vet every company carefully so that only the best is selected. For example, you should carefully review the companies and leave out those firms that rush to collect clients’ cars within days of default. The best way to know about a god company is talking to previous clients. They will tell you how the company related with them and even advise whether to proceed or not.
Carefully read through the terms and conditions before signing the agreement
Once you sign the agreement with the logbook loan company, it is required that you adhere to all the conditions. Many people find themselves in trouble because they never read the rules and are caught by surprise. You must, therefore, carefully read through the instructions to know the limits. For example, if the agreement requires you to pay on the tenth of every month, you can reorganize finances to meet the targets.
Do not stop at reading the agreement, go ahead and ask for a review. Note that logbook companies are in business and look forward to having a happy customer base. Therefore, when you ask for some minor changes, they will not be opposed. For example, if one of the rules indicates that you must meet the monthly payment on the first day of every month; there is a likelihood of defaulting in the case of salary delays. Ask the lender to relocate the payment date to any day after 20th of every month. With such changes, you are sure of meeting the deadline even if the salary is late with a week.
Review all your debts and start paying with the logbook loan
In many cases, people go for logbook loans because they have been turned away by conventional banks. To get out of the debt burden, it is important to start clearing the loans commencing with those that have high-interest rates such as logbook loans and credit card loans. By putting the logbook loan on top of the repayment list, it will be unlikely to default. Note that we do not imply that you should default, but, in the repaying the logbook loan will not be affected in case of issues with your revenue flow.
Consider opening new lines of income
If you entirely rely on salary to pay the logbook loan, try to look for another source of income to boost your revenue. For example, you can opt to work online for a few hours after work for additional revenue to ensure that all the expenses are met. You can also try a hand in small home business that does not require a lot of capital. You can also take your wife to a short baking course, buy the right baking machinery, open a website, and start supplying cakes to clients.
Stay in touch with the logbook company
Many lending institutions want always to know that you are available for clarifications and repayment. Your logbook loan company also wants to feel part of you. In fact, they want your positive story to build on their repute. Therefore, keep talking to the company and notify it well in advance if you feel that the payment will be late with a few days.