How to Win Trust in Your Bank after Taking a Logbook Loan

Many people who turn to logbook loans consider them the option of last resort after other applications are declined by conventional banks. However, logbook loans are only a short-term solution to your financial problems. Within a couple of years, you might require a bigger loan to finance other projects such as real estate operations or even business. Therefore, the faster you get through with the logbook loan, the better. More importantly, you need to start building trust with the bank so that they consider you a less risky party. Here are some useful tips on winning trust from banks.

Ensure to keep the accounts with the preferred bank open

Though the bank is not willing to lend you at the moment because of the risk involved, it does not want to lose you as a client. After improving your credit score and building multiple streams of revenue, the bank will easily resume lending you compared to a new client. However, it is imperative to ensure that the account is active to demonstrate you can sustain loan repayments.

Work hard to improve personal credit score

Your credit score is perhaps the biggest indicator of an individual’s creditworthiness. By improving the credit score, all banks will be ready to approve the loan during the next application. Here are some useful tips for raising your credit score;

  • Check and correct any error in the personal credit report by three credit reference agencies.
  • Ensure to meet your credit obligations especially regular bills on time.
  • Consider debt consolidation loan using home equity to enjoy lower interest rates and make repayment easy
  • Consider borrowing from your own account and building a good repayment history

Craft a workable debt management strategy

Every lending institution wants to see a workable plan that borrowers are using to move on to the next step. As you continue repaying the logbook loan, having a long-term financial plan is very important. Depending on the amount of revenue streaming into your account it will be easy to convince banks you are a reliable borrower and do not present any risk. For example, you can include multiple sources of revenue such as a home baking business, salary, and stock market trading to help clear any loan faster.

Adopt serious austerity measures by changing personal lifestyle

As you apply for the logbook loan, it is important to ponder what exactly resulted in the current precarious situation. Whether it was an emergency or piling bills, the experience should help you emerge wiser. One way of preventing recurrence of such situations is serious austerity measures. For example, you could consider buying a smaller car with better fuel economy or even ride to work every day. Then, some of the freed money can be used to repay the loans and build an emergency fund.

Consider using collateral when borrowing from the bank

Even if a bank is not willing to lend you cash because of poor credit score, good collateral will easily make them reconsider the application. In many cases, banks will consider your loan application for borrowers using home equity or their vehicles. The collateral is a demonstration that you take the loan very serious and can go to great length to prevent the asset from getting auctioned to recover unpaid debts. However, you must be extra careful when attaching your home equity to the loan because it can be sold by the lender if you default.

While taking a logbook loan is considered the lowest moment that a person can sink to because of the risks such as high APR, it is paramount to start rebuilding trust from the current financial institutions. By looking at the situation from a long-term perspective, it will be easy to make banks and other financial institutions your partner because their credit is flexible and attracts lower interest rates.

Five Things That Can Make a Logbook Loan Sink You Deeper Into Financial Trouble

Once you decide to go for a logbook loan, it is important to appreciate the risks that lay ahead. In many cases, it is considered the credit of last resort because most financial institutions have declined loan applications. Like financial experts point, the logbook loan should only be used with a lot of caution. In this post, we look at five key things that can make you sink deeper into financial trouble after taking a logbook loan.

Prioritizing payment of other less risky loans while giving less focus to the logbook loan

The moment the lender approves your logbook loan, it is important to appreciate that a lot of dangers lay ahead. Because you have already given away the car documents, the risk of losing it becomes real. Failing to prioritize the logbook loan when repaying other bills can only worsen your present credit situation. While other debts need to be cleared as fast as possible, those that do not come with a lot of threats can wait until the riskier logbook loan is cleared. For example, the student loan can wait for a couple of months because it does not attract any interest and no collateral is attached to it.

Taking the maximum that the lender has to offer as opposed to what you need

For many people who have been declined loans by banks, a chance to borrow looks God sent. However, this is a trap that makes most people to nosedive into the sea of trouble within no time. Even if the lender is willing to offer £30,000, but you only need £2,000, consider going for what is needed only.

A bigger logbook loan means that you will repay for a longer time with higher interest rate. Repaying a lot of cash every month for a long time is bound to cause fatigue and raise the chances of defaulting.

Hiding from the lender when meeting monthly payment becomes difficult

If you realize that the sources of revenue are having issues and meeting the monthly repayment is becoming difficult, running away will only worsen the situation. The loan will accrue a lot of interest, and the lender will start looking for the car to recover the money. Instead of running away, it is advisable to visit the lender and tell him what you are going through. Though some additional interest might be incurred, some good lenders will even allow you to readjust the repayment amount for a few months until your issues are resolved.

Failing to relook at personal spending and reworking on the budget

Financial experts in the UK and banking institutions have found that many people get into trouble with personal finance because of poor budgeting. This problem can make things worse by drawing you deeper into the turmoil of debt.

After getting a logbook loan, it is important to relook at your budget from a different angle to help release some cash. If you find it difficult to achieve this alone, make sure to seek help from a financial expert. A good budget will help you to look at personal finances from a long-term perspective.

Looking at the logbook loan in isolation

Personal finance is not about the logbook loan only. To reach financial freedom, it is important to have a bigger picture and factor the loan in the budget. If you look at the logbook loan in isolation, the chances of sliding back into the situation you are in are very high. When drawing a financial strategy, experts advise clients to look beyond the logbook loan and other credits. For example, the austerity measures you adopt should be implemented to help clear the loan, build an emergency fund, finance personal businesses, and create new lines of revenue.

Expert Advice on Raising Money to Clear Your Logbook Loan

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.

 

Is A Logbook Loan Worth It?

Logbook loans in the UK have become very popular not because they are easy to access, but also due to numerous controversies about them. They are quick and perhaps the easiest to access even when one’s credit score is very poor. However, financial experts go to great lengths to discourage people from them. From associated risks to high-interest rates, the reports of people who have sunk into deep trouble are always hitting the headlines of every media in the UK. Therefore, are they worth?

A logbook loan is a type of credit service where cash is advanced against your car. Once you sign the agreement, the ownership of the car is temporarily transferred to the lender. However, you must continue paying the agreed monthly payment to continue using the vehicle.

Why the logbook loan?

  • Easy and fast access to personal credit

The ever rising living costs have put people’s lives on the edge. In many cases, what they earn is never enough, and an urgent need for extra cash can throw them off balance. Now, even when getting a bank loan is part of the options on the table, the process is bureaucratic and tedious. However, a logbook loan only requires one to proof of car ownership and source of income. In some situations, the cash can be on your account within the same day. This enables you to tackle emergencies such as medical bills, rent, and others.

  • Ability to control what you borrow

If you opt to borrow from a conventional bank, the institution controls what you can get. This makes people feel passive. However, logbook loans make people become part of the process because they know the amount they can get. Some logbook companies give as much as 70% of the current car value.

  • No background checks for your credit score

For many people falling into debt and seeing the credit score plummet can happen within a very short time. However, getting out is a difficult task. In some cases, it takes years. However, as far as you have a car and can proof source of income to repay the loan, it is very easy to secure a logbook loan.

The dangers that come with logbook loans

On the flipside, getting a logbook loan is like following a dangerous route though everybody is talking about the perils on the way. The major risks include;

  • Very high-interest rates

While the conventional loans are very cheap and indeed flexible, the logbook loans are not. The APR (annual percentage interest) is very high. It often goes up to 400% by some companies.

  • Risk of further harm to your credit score

Though borrowers are rarely told, defaulting on logbook loan can easily cause the credit score to get worse. Because they are licensed lenders, their report to credit reference bureaus could further damage the score.

  • Danger of having the car reposed

In many families, the car is the second most valuable asset after a house. Besides, it is very important because it defines the family. Dad takes kids to school using it before leaving for work with wife downtown. Besides, it is used for shopping, going camping, and making the family life enjoyable. Getting a logbook loan means envisaging life without it! That is right. If you default, it will get repossessed, and life could change completely.

Final verdict

Apart from these risks, the logbook loan provides a reliable option of credit to all. The loan can only help you by getting a bigger picture before taking it. The bottom line is; do not go for it until all the other options have been exhausted. However, if you select a good lender, negotiate for better rates, and only borrow what you need; the loan is okay.

How to Get the Best Deal for Your Logbook Loan

Sometimes unexpected events just come up and leave you in need of a quick short term loan. Sometimes you are left stranded wondering where you are going to get a hold of the cash you need. This is even more difficult if you are thinking of taking a short term loan but you have a bad credit rating. Luckily there are a lot of financial institutions out there with varying terms and conditions and options. One of those options is taking a logbook loan.

While doing so, all you will be required to do is walk into one of the branches of your logbook loan provider and hand in your V5 document. Once approved the money is disbursed within a very short time and the whole process is quick and easy. You can borrow as much as you need and many times you will be able to repay the loan within a month or two.

If during such an unexpected event you do decide that the best option for you is to take a logbook loan, you should know that the amount you are eligible for is to a large extent dependent upon the value of your vehicle. It is important therefore in order to secure the best possible deal for yourself, to be able to maintain your car in the best condition. Let’s now look at how you can do this:

  • Always keep the car well serviced and repaired. A car that has a lot of broken parts and is not in top form will not attract a good price when you are trying to sell it and that goes the same way when it comes to securing a logbook loan. Always carry out regular maintenance that way when submitting your application for a logbook loan, you will be able to get the best value for your car.
  • Ensure that your car has passed its MOT. Getting your MOT certification is fairly easy provided your car is in top form. Failing may mean that your car is not road worthy which will have a drastic effect on its value. Maintaining the vehicle in top condition will help with its MOT certification and improve your chances of getting a logbook loan.
  • Brush up on your paperwork before applying for a logbook loan. By having all the necessary documentation ready, such as the V5 registration document, proof of citizenship and proof of your ability to pay back the amount mainly through bank statements and pay slips, you will play your part to help speed up the process and get your money within a relatively short time.

When taking a logbook loan, ensure that you understand fully the terms and conditions on the loan such as your repayment period, the interest you will be paying back, the periodic amounts you will be paying and the consequences for not paying back your loan on time. To take the logbook loan you will need to be the legal owner of the car and it has to be more than 500 pounds in value. Short term loans usually have high interest rates and you need to be sure you can repay the full amount.

Make sure your lender is a member of a trade body and adheres to its code of practice and conduct and keep in mind the cons of taking a logbook loan in mind at all times. These are;

  • You lack the same consumer protection as found in a hire purchase agreement
  • It’s easy to lose your car in case you can’t pay back the logbook loan. When taking the loan, you hand over ownership of the car to the lender.

That said, once you are well versed in the conditions surrounding and necessary to take a logbook loan, you can go ahead and apply for one as it may be a sure fast way to get you out of your current situation and help you sort out your short term issues.

Five Simple Ways to Improve Your Credit Score after Securing a Logbook Loan

Securing a loan from a bank with bad credit is perhaps the hardest thing that you can ever imagine. Because of poor credit score, most financial institutions will see you as a high-risk party and close your case without even checking any further. However, most logbook loan companies are not interested in your credit score as far as the car is in good condition and demonstrate the capability to repay the loan.

After securing the logbook loan, the focus must shift to building your credit score. Because most of the logbook loans are very risky and come with high-interest rates of up to 400% APR, it is crucial to avoid getting into a similar situation in future. The borrower must start working on improving the credit score immediately. This will make it possible to access credit from banks by the time you are through with the logbook loan. The following are five simple ways to improve your credit score.

Check and correct your credit score with three reference bureaus

The institutions (bureaus) responsible for calculating your credit score are third parties. They have to rely on institutions that deal directly with clients such as banks, mortgage companies, insurance firms, and others that maintain financial records. Because most of these parties are for-profit organizations, submitting your details is rarely on the top of their agendas. Banks concentrate on looking for new clients, building their brands, and raising profits.

In many instances, it is not uncommon to get your credit score misrepresented. Therefore, by getting your credit report with three bureaus, it is easy to point what is missing or misrepresented. If the details of the loan you recently cleared have not been submitted, the credit score would be calculated based on the previous data.  By correcting the details, it is possible to raise the credit score by a significant margin.

Borrow from your own account

Even if banks have declined to lend you, it is still possible to borrow from a personal account. Simply tell the management that you are on a mission to build the credit score, and they will make arrangement to lend you from a personal account. Then, commit to repaying the loan on time and it will be captured as a short loan. All the repayment details will go towards improving your credit score.

Develop a strategy for clearing debts

Now that you have added a new credit, a proper repayment strategy is crucial. It is important to create a plan to cut on costs and start clearing one loan after the other. The best method is starting with the loans that are riskier and most expensive. For example, you can start paying the minimum amounts on all other loans and commit the extra cash to clearing risky credit such as logbook loan.

Pay all your bills on time

While most people think that it is only bank loans that damage credit history, it is important to note that even common bills can pull down the score. From utility bills to credit card bills, you need to settle them on time. You should particularly follow with the credit card company to get a regular report and clear any inconsistencies.

Avoid closing credit cards as a short-term strategy

While the interest rate that accrues from the credit cards is usually very high, a decision to close the card is ill advised. By closing the card, you remove even the good history that helps to improve on your credit score. Indeed, even closing the card will still not work because the bad history will remain. The best thing is reaching the credit card company to draw a repayment plan. You can also set the spending caps to avoid overspending.

 

Stuck With A Logbook Loan? Here Are Three Things You Can Do

A logbookloan is an easy way of getting fast credit against your vehicle. The loans are usually taken by people with poor credit score and cannot secure loans from other conventional institutions such as banks. However, a lot of people in the UK get stuck with the loans when they find it difficult to keep up with the agreed repayment schedule. What do you do when it gets difficult to continue repaying the logbook loan?

Things you must be aware when taking a logbook loan

When you settle for a logbook loan, it is prudent to be cognizant of the numerous risks that come with it.

  • The APR (annual percentage rate) is very high. In many instances, this percentage could be as high as 400%.
  • When you take the loan, the car ownership is transferred to the lender. You are required to submit the car logbook or V5C vehicle registration certificate to the lender.
  • The lender is allowed by law to come and take away the vehicle immediately if you default. However, most of them will not tow it away until you default for several months.

Taking into consideration that your credit score was already poor because of outstanding loans, the chances of finding it difficult and defaulting is very high. With the car being the most valuable asset after the house for many people, seeing it getting towed away and auctioned is painful. However, do not let that happen by using these three solutions.

  • Talk to the lender about the problem

Logbook loan companies are out there on a business and, therefore, will go to great lengths to make a profit. It is because of this that they charge very high interest rates on their services. Their interest is not starting lengthy battles with clients, but getting smooth payment to make a profit. If you find it difficult, to meet the agreed schedule, the first stop should be at the lender’s office.

Demonstrate to the lender why you can no longer continue paying the agreed amount and what can be managed on a monthly basis. For example, if you just had a medical problem and you only expect disruption for a few months before springing back to the agreed repayment level; most lenders will reason and agree. However, you must be prepared to incur additional penalties.

  • Talk to a financial expert about the problem

When people turn to logbook loans, they rarely think of reaching to the point of getting the vehicle towed away. However, the reality dawns on them when it becomes extremely difficult to service the high-interest loan on a monthly basis. But you can still address the problem by seeking assistance from a financial expert.

Top financial experts have handled similar or even worse situations. So your problem will not be a mountain. One solution recommended to many people is weighing the risks that come with all the loans and focusing on the one that poses bigger loss. For example, if you are servicing credit card loans, insurance loans, and other credits not attached to any collateral; they do not pose a risk of taking away the only family car. Therefore, you will be advised to put more focus on the logbook loan because the car is at a great risk.

  • Organize to sell the car and notify the lender

In extreme cases, you might need to reconsider the unfolding problem and work on tackling it head on. Well, take a situation like this. You have a car worth £5000 and have taken a loan of £1500. Now that you have gotten stuck, a good solution might be organizing to sell the car for £5000 and clearing the remaining amount in full. The balance of about £ 3000 could be used to acquire a cheaper and reliable family car. Remember that in such a case, you must involve the lender because he already has the logbook (owns the vehicle temporarily).

Four Most Important Things You Must Know Before Taking a Logbook Loan

A logbook loan is one of the easiest lines of credit. They are processed fast, and your credit score is not a factor like in other financial institutions. However, borrowers have been cautioned to be extra careful when taking logbook loans because of the numerous risks that come with them. In this post, we outline the four most important things that you must know prior to taking a logbook loan.

The difference between APN (Annual Percentage Interest) and other bank rates

Logbook loans attract high-interest rates compared to conventional credit from banks. While common banks offer their credit at interest rates of as low as 5%, most logbook loans have as high as 400% APN. Take an example, of Mobile Money Logbook Company that has an APR of 99.9%. Therefore, a client who borrows £1000 for a period of 18 months will be charged £665.10. The client will, therefore, pay a total of £1665.10 by the end of the repayment period. Having a clear picture of this interest rate will help you to plan appropriately. Note that this is just one company; others might have higher interest rates.

Financial impact for non-repayment

Once you sign the agreement and the loan is released to you, it is prudent to make the monthly payment on time. Because every logbook loan lender has individual rules that govern actions for non-repayment, it is very critical to read through the respective policies. The main financial implications include the following;

  • A harsh penalty could be slapped on you. This will raise the total amount you will pay by close of the repayment period.
  • Because the loan is taken against your car, the lender could come for the vehicle and sell it to recover the money.
  • If the lender sells the car and the amount raised is not enough to clear the loan, the lender will still come after you to recover the balance. You will be sued in a court of law to help recover the balance.

Non-repayment implications on credit score

While logbook loans do not factor your credit score when you are applying, things change in case of non-repayment. Because the logbook firm is a licensed lender, he is allowed by law to provide credit, and his report to the credit reference bureau will further damage your score. Since most repayments are made through banks, they usually include info pointing your details and inability to repay the loan. It is, therefore, very critical to ensure that you make all monthly payments on time.

The flexibility of the lender

The lender you go to for a logbook loan is very important for a smooth repayment session. Many are the times you will get reports of people’s vehicles being towed and getting auctioned because they failed to remit monthly dues. When you select the lender, it is important to get it right on all the particulars of their flexibilities.

Establish whether the lender can renegotiate the deal in the case of financial difficulties: If you had agreed to remit £ 90 every month, but you are finding it difficult, the best lender should agree to renegotiate. For example, the figure can be lowered to about £80.

Find out how fast the lender moves to recover the vehicle if you fail to remit monthly dues: Because you have already surrendered the ownership of the car by taking the loan, the lender is at liberty to come for it any time after defaulting. However, you should borrow from a lender who is not hasty to take the car away. Some will look for you to find out if there are difficulties and work for ways to address the issue.

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!

Five Must Do Things to Stay From Trouble after Getting a Logbook Loan

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.