If you are considering taking a logbook loan, the chances are that you are in a sort of financial trouble. Over 90% of people who go for logbook loans in the UK today are under serious financial distress. In most of the cases, their applications for credit have been declined by conventional lenders because of poor credit score.
At this point, many see like there is no light in the near future. But this is incorrect. A closer look at a significant proportion of those people who are very successful in the UK today will reveal that they had sunk to the bottom of their lives at some point. Therefore, your situation is not unique. Here are some useful tips to help to turn them into stepping stones to success.
Draw a comprehensive plan to clear the logbook loan and other high-risk credits
Debt problem for many people often unfolds rather fast. Some do not even know how it happened. Well, consider that history. What is more important is ensuring that you get out of the problem.
Start by drawing a good debt recovery plan. This means appreciating that there is a problem and committing to counter it. There is no letting go! A recovery plan will require settling to some basics of budgeting. Factor, your income and ensure that ample resources are dedicated to clearing the logbook loan and other high-risk loans.
Remember that the budgeting should incorporate all the components that are meant to help you keep moving. Make sure that the daily expenses such as rent, food, transport, and other essentials are catered for. Then, direct the remaining funds to clear the logbook loan and other debts.
Make the personal credit score improvement the driving force of everything
One thing you must appreciate is that there is no financial freedom without improving personal credit score. Indeed, it is the main reason you are in the current hole. Therefore, you must place raising credit score the priority in everything you do. How can this be achieved? Though there is no shortcut for it, it will come as a surprise to realize that some methods are indeed very easy to implement.
- Correct your credit score with credit reference bureaus.
- Borrow from your account. Since no bank is willing to lend you cash, go ahead and borrow from your account and repay on time to build a good credit history.
- Make sure to clear all the outstanding loans. Do not ignore clearing even the monthly utility bills on time.
- Avoid overspending and direct the efforts to clear outstanding credit and building an emergency.
Take to austerity in personal lifestyle
Though it might appear that everything is against you in so many ways, take a closer look and will appreciate a lot of loose ends. For example, instead of taking lunch at the expensive restaurant, consider carrying food from home and directing the savings to clear loans. Other areas of austerity you might find important include;
- Subscribe to online movies as opposed to going to the expensive theaters every week.
- Ride to work or take the public transport instead of using the family car.
- You could even cut the number of holidays to one instead of three and commit savings to growing the saving portfolio.
- Work towards creating multiple lines of income.
The final take
While taking a logbook loan is no doubt considered the lowest that a person can sink financially, it can also be a turning point. Take a break and look at it differently. Every cloud has a silver lining. Let the logbook loan become the last and the first stepping stone towards your personal, career, financial, family, and holistic success. It has been done, let this be your turn to grow.