Every time that the name logbook loan is mentioned, what comes to people’s minds is a person who is in a financial crisis. This is true. In many cases, people looking for logbook loans have a very low credit score. This makes banks to reject their loan applications because of the high risks involved. However, getting at this point does not mean you cannot reach financial freedom. Here is the story of Michelle Grogan who overcame all odds to become a better financial manager after taking a logbook loan.
How Michelle sank into financial problems
Michelle Grogan, an industrial worker at a Bakery in London, was living a great lifestyle. As a single mother of one daughter, she felt successful because she had just completed paying her mortgage. However, she still had many loans that required a couple of years to clear.
In spring of 2015, Michelle’s daughter fell ill and was admitted to hospital for 6 months. This drained Michelle’s resources leaving her with no money to service her loans. Two months before her daughter was discharged, she took a logbook loan of £3500 against her car to cater for the fast-growing expenses.
Things ran from bad to worse when she lost her job a month after her daughter was discharged. At that point, she was pressed by the different debts, the logbook loans, and other expenses that come with taking care of a sick person.
Getting out of financial trouble and walking to financial freedom
- Seeking and implementing recommendation of a financial expert
Seeing that the remaining sources of revenue could not cater even for the logbook loan, she had to seek an urgent solution.
- She sought assistance from a financial expert who advised her to consider selling the car immediately. But this could not be done directly because the ownership documents were already deposited to the logbook loan company.
- To get more from the car, Michelle searched for a buyer and went with him to the lender. She explained her situation, and the vehicle was sold for its total value of £ The lender deducted his loan of £3500, and the remaining £4000 was deposited in Michelle’s account.
- Opening a new stream of revenue
The financial expert did not stop there. He was very concerned that even after clearing the logbook loan, Michelle’s problems were far from over. She had to also clear other loans. Therefore, she recommended that Michelle start a business to get new streams of revenue for clearing the remaining debts.
She converted her garage into a bakery and acquired baking equipment using the £4000 from the car sale. She also opened a website and started selling baking related recipes. With her daughter assisting with website administration and managing orders and Michelle working on deliveries, the business grew rapidly.
They enlisted services of another employee who helped to raise production and revenue. So successful was Michelle’s bakery by June 2017 that she incorporated her baking companies as bigger orders came knocking.
- Improving personal credit score
As the company grew, Michelle designated some cash for clearing other loans. By mid-2017, Michelle had cleared all the loans, and the banks were now approaching her to assist with loans. By roping in the financial expert who assisted her, Michelle is walking towards financial freedom by implementing the following things;
- Setting enough emergency plan to cater for any emergency
- Insuring the business and her family’s lives
- Diversifying investment by acquiring bonds and new real estates
- Buying shares in other highly successful companies
- Teaching her daughter about budgeting and financial management
Sinking to the bottom of financial trouble does not mean you cannot rise and be successful. Even if you take a logbook loan because of poor credit score, make sure to get expert advice on financial management. If Michelle managed to get out of debts stronger, you too can march to financial freedom.