When it comes to your finances, it is a must that you build on an emergency fund in order to avoid unnecessary loans. However, this is something that isn’t really followed by a lot of individuals. This explains why payday loan business is becoming big in Europe and in different parts of UK. If you’ll check the payday loans, you’ll realize that it can be somewhat hard to pay back. Considering that most people who borrow money from payday loans live per paycheck monthly with barely some savings, returning the money you borrowed immediately after 30 days can be an inconvenient scenario.
Payday loans may seem convenient for so many individuals today, but this may not be the best option for you. These days, there are the logbook loans that you could rely on. What is a logbook loan? Logbook loan is the money you will get in exchange of your vehicle’s logbook as collateral.
If you decided to opt for the logbook loan, you have to understand this kind of loan fully. It is imperative that you know what you are getting into and how it will differ from a lot of loans available out there.
Logbook is basically a document that has been issued by the Driver and Vehicle Licensing Agency. This document will tell you who really owns the car. It involves the registration mark, chassis number plus info on who owns the vehicle.
How much money are you going to get?
Basically, there is no fixed amount of money that you could get when it comes to the logbook loans. If you’ll look at http://www.fastlogbookloans.co.uk – logbook loans, in fact, it depends on the value of your car. If you have a 10 year old vehicle, don’t expect that you are getting the same value as a 3 year old vehicle. According to statistics though, the average money you could get is at £1,000, but of course, it is possible that you’ll be getting £50,000 depending on your vehicle.
Time needed to pay the loan
The greatest thing about the logbook loan is that it is not a rush to pay the lender back. This is something that isn’t present in the payday loans. The logbook loan can be repaid ranging from six months to 18 months depending on the amount of money you borrowed.
But of course, you have to understand that it functions more or less the same as pawning an asset. If you haven’t paid the loan along with its necessary interest, you may not be able to get your car anymore. This is when the lender could already get your car without a court order.
But of course, if you are careful on evaluating just how much money you need, you will not really end up in a worst case scenario which will leave you with no car to use. If you are serious about getting a loan, it matters if you could ask the experts about it. You can call the logbook loan company to know more about the details regarding the interest rate, and the amount of time that you will get once you proceed with the loan.