Logbook loans are a hot topic in the world of fast financing, and for good reason. Once you have a logbook loan that’s been approved, you have money to use on anything that you could possibly think of. However, people often wonder if that’s really the case. Once you are approved, it is true: lenders will not ask you what you plan to use the money for, and they will not base their approval on what you need the money for.
This opens the door for a few situations, to be sure. Let’s go over them.
A Temporary Reduction in Income
If you work in a field that lowers your hours for part of the year, then you already know how tense things can be when you have to make money. Unfortunately, your bills don’t care whether you’re working with full hours or not. They still expect to be paid, and the collectors will be at your door if you don’t get it together. When you can’t go to friends and family anymore to get the problems solved, where do you go? The bank? That’s a joke these days. The banks generally only wish to lend to people that have top notch credit. If you’re in a bind, chances are pretty good that you just don’t have that avenue to explore. This is a great situation for a logbook loans, because you can borrow the money that you need and have plenty of time to pay it back. You will be approved as long as it’s a temporary reduction and nothing that’s going to mean you’re out of a job. Stable income is more important than the number itself. Most lenders are more than willing to work with you.
A Death in the Family
Funeral costs can be absolutely outrageous. And don’t think that the Government is going to step in and help. The average allowance for funerals was only 300 GBP. Most funerals, including the preparation of the body, can be nearly five times that, if not more. The upswing in funeral costs is why it’s so important to plan ahead. Of course, who can plan for a sudden loss? No one, that’s exactly right! This is where you can turn again to logbook loans, because you will be able to get the money that you need quickly. Again, you can get approved without having to talk about your problems. The lender just wants to make sure that you have a willingness to pay the money back as agreed.
A New Baby
Getting ready to bring home a newborn is a very exciting yet stressful time in a family’s life. Whether the birth is natural or via adoption, one thing is clear: there are a lot of things to be purchased, and not very much time to make those purchases. It’s best to ensure that you are truly looking at every aspect of the purchasing process, so you don’t miss anything critical. A logbook loan can be paid over a longer length of time than a traditional cash loan, making it a better choice when you have a lot to pick up for your little ones.
Putting it All Together
The logbook loan works because it’s a secured loan against your vehicle. As long as you have stable income and employment along with a vehicle that has sufficient value, you can apply for one of these loans. It’s highly likely that you’re going to get approved because you’re putting up the value of your vehicle. Lenders know that you rely on your vehicle all of the time to get everywhere that you need to be. You might as well make those payments. Yet these lenders also know their market category very, very well. There are procedures in place that ensure that they don’t just take the vehicle. As long as you get things settled the right way, you aren’t in any danger of losing your vehicle. But if you don’t make any payments and then you avoid them, they have no choice but to escalate the problem and put your vehicle up for auction. This can be a pricey process, because there’s no guarantee that your vehicle will sell for the full amount of what you owe. Aside from that is another problem: once it goes for auction, you will not be able to pay for the repossession fees. It’s better if you just pay the payments as agreed.