Why Shady logbook loan lenders are your worst enemy

The benefits of logbook loans notwithstanding, we can’t be blind to the fact that shady logbook loan lenders have indeed made many people lose faith in logbook loans. Initially, logbook loans were meant to be a solution to a problem, a means through which bad credit individuals got a shot at redemption. It was, in no uncertain terms, a loan product that led to a paradigm shift on how people viewed individuals with a poor credit rating. While the intention for introduction of logbook loans was noble and well meaning, shady logbook loan lenders hijacked the goodwill to make the whole process of acquiring a logbook loan a nightmare of sorts.

In recent years, there has been a wild cry among UK individuals who have been swindled in one way or another and sadly, ended up losing their cars not to mention finding themselves deeper into debt. Cases of harassment bordering on physical abuse, emotional torment, uncouth professional behaviour, and death threats in extreme cases are just but some of the unethical ways that shady logbook loan lenders use to intimidate their borrowers to meet their end part of the bargain.

Indeed, the narrations by borrowers of harrowing experiences under the hands of shady logbook loan lenders is testimony to the fact that to some extent, logbook loans have been used to exploit unsuspecting borrowers. You only need to do a simple search online to come face to face with harrowing recounts of how some borrowers have been unduly treated and victimised under a logbook loan. The murky world of logbook loans has been characterised by extreme interest rates, harassment calls and wanton car repossession without much of a prior notice.

As if that is not worse enough, unsuspecting car buyers have found themselves in the deeper end of the pool when logbook loan lenders repossess their cars even when it’s clear that they were unaware the car had a logbook loan attached to it at the time of buying. It is clear that laws governing logbook loans are as old as civilisation and therefore it is about time that there was a change in the same. The bill of sale agreement give logbook loan lenders powers to repossess a car without following any due process and this clause has been effectively abused by shady logbook loan lenders for selfish interests.

Individuals who have suffered under the hands of shady logbook loan lenders report either of the following cases:-

  • Evasive lenders when it comes to explaining terms of the loan. Shady logbook loan lenders rarely divulge all information regarding the loan hence misleading borrowers to make uninformed decisions. In other words, the terms of the loan are vague and not clearly explained.
  • Harsh treatment by lender on missing one or two payments
  • High penalty charges and fees on default
  • Extreme and harsh collection practices
  • Car repossession without giving borrower sufficient time to get their finances in order

In light of the above, it’s crystal clear that shady logbook loan lenders are simply out to enslave borrowers and exploit them to the maximum. They are like vultures waiting to pounce any minute when a borrower faces some sort of financial constraints.

There is therefore the need for a relook into the laws that govern logbook loans. There need to be consumer protection especially those that buy cars unaware that they have a logbook loan attached to it. That notwithstanding, it’s imperative to do due diligence before engaging the services of a logbook loan lender or even buying a second hand car. After all, it is always important to be safe rather than sorry!

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.

101323427-GettyImages-150973355-2.600x400

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.

x5mE2n3Y

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.