A sneak peek into Logbook loan basics

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If you are in a quandary on how to get approved for a loan even if you have bad credit, it might be time for you to consider taking out a logbook loan. Unlike personal loans that require you have a good credit score or collateral prior to approval, logbook loans are instrumental in the sense that they do not take into consideration a person’s credit score. In essence, a logbook loan is a specific type of secured loan where a person’s vehicle is used as collateral. However, unlike conventional loans, this particular type of loan does not require one to have a stellar credit score. In fact, the requirements for availing this type of loan is quite simple as this site will further expound. You simply need to be a UK citizen of legal age and able to prove ownership of the car you wish to use as collateral.

Getting the loan

The greatest appeal with logbook loans is the fact that it provides reprieve to individuals who are unable to avail loans through conventional means. It’s the perfect loan instrument for UK individuals who are deemed as high risk owing to the status of their credit score. Applying for the loan is pretty simple as all you need to do is locate a UK logbook lender of your choice depending on the competitive interest rates they offer. Provided that you have all the requirements, processing of the loan is usually done within hours and a check of your requested amount given to you. However, if you need cash instantly, there are a number of UK lenders who offer instant cash at a fee. The choice is yours to make and credit checks are never an issue.

What kind of car is accepted as collateral?

Most UK lenders have no problem accepting any type of car as collateral provided that it is in good condition (not have been on the road for more than 10 years), does not have any kind of financial attachment to it and the car in question is legally owned by the applicant.

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Paying off the loan

When you apply for a logbook loan, you have up to 78 weeks to make repayments. The onus is on you to make a decision as to whether you wish to make weekly repayments, bi-weekly repayments or monthly repayments as well as the preferred mode of repayment. You can actually pay through a debt collection agency, through automatic deduction from your bank account or even through cash.

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Any risks involved with applying for a logbook loan?

The biggest risk is of course the high interest rates associated with logbook loans. The interest rates are sometimes too high that you might end up repaying twice the principal amount. The other main risk is repossession. When you take out a logbook loan, you sign a bill of sale agreement that essentially makes the lender temporal owner of the car and gives the lender legal right to repossess and even sell your car should you be unable to repay back your loan


Effective tips to save money on a low income

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The need to plan for the future, create wealth and lead a comfortable life is the reason many people have embraced the culture of money saving. While saving money is a good thing, sometimes individuals earning a low income find the going tough in as much the heart is willing, they simply don’t have the resources. Many UK citizens are living from paycheck to paycheck and it might be understandable why saving money could be the last thing on their mind. However, we can’t be oblivious to the fact that irrespective of how much we earn, we all have dreams and goals we wish to achieve.

Feeling sorry for oneself and resigning to fate is not going to help matters. We must take the bull by the horns and do everything within our power to save as much as we can even if we earn a low income. You can indeed save money even if you feel as if every last cobble of your money is catered for. This piece is about shedding light on some of the effective tips that low income earners can utilize and save money. How can you ensure you save and ultimately achieve your financial goals even if you are a minimum wage earner?

Take your high interest debt head on

High interest debts attract humongous fees and outrageous interest rates. In fact, these interests and fees eat into most of your income and is one of the reasons why you find saving money herculean. In this regard, it’s highly recommended that you tackle your high interest debts head on. Come up with a plan on how you can reduce this debt while at the same time avoiding accumulating more high interest debts such as credit cards. With time, you will find that you have more disposable income to enable you save monthly even if you are a minimum wage earner.

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Cut down on bigger expenses

When you are a low income earner, cutting down on expenses might seem like a daunting task. Chances are that you’ve taken measures to cut down on small expenses by preparing your meals at home and carry to work instead of eating in a restaurant as well as probably cancelling your cable network. However, this alone is not sufficient to make the big impact you so desire. It might be time for you to focus on cutting down bigger expenses. For instance, if most of your money goes towards paying rent, you might consider moving to a cheaper smaller house or resort to sharing a house with a roommate. By so doing, you share costs and end having a little bit more to save.

Consider starting a side hustle

The goal is to increase your income streams. Apart from your full time job, you should consider starting a side hustle to earn more income. A side hustle could be a job you can do right from your home. Think of something you are good at and which you can monetize to earn some extra income. The more income you have, the more money you will have at your disposal to save.

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Ensure that you keep your budget lean

Embrace moderate spending and only spend money on what’s necessary. For instance, if you dine out once a week, you might consider putting that off for quite some time. You have to make sacrifices and save every penny even if it means a change in your lifestyle.


Surefire ways to develop money saving habits

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Whether you like it or not, the fact of statement is that developing a money saving habit is not a walk in the park. To be consistent with saving money is not easy and that is why our hats go off to all those individuals who have disciplined themselves and have dared to succeed where so many struggle. If you have been inconsistent with saving money, don’t beat yourself up as it’s actually not easy. It requires sacrifice, discipline and commitment. With that said, lets categorically state that it can be done. It is for this reason that we are going to shed light on surefire ways to develop money saving habits.

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Set clear goals

In order to save money, you need to have motivation and there is no better way to do this than set clear and specific goals. What is it you are saving for? Before you start saving money, ensure that you set clear short term and long term goals. Of course, you need to focus on achieving short term goals such as the need to buy a new car before you set your sights on long term goals such as owning your own home in say 5 years. The secret is, having a clear goal makes you focused to achieve all your financial goals.

Endeavor to pay yourself first

To pay oneself first is the golden rule of personal finance. Before you can save a chunk of your income, it’s important that you pay yourself first so that you can meet certain personal needs without feeling the need to go back to the amount of money you saved. Each month, take a portion of your salary and pay yourself and put the remaining into a savings account.

Develop a saving mindset

Be obsessed with saving if you must. Make it a point to think at every moment how you can save more money. If you think about saving most of the time, chances are that you will stick to your money saving plan and be consistent in saving. If you find yourself with some extra cash from what you paid yourself, do not hesitate to put the same to a saving account.

Look for alternative income streams

If you have been depending on your salary alone, it might be time to look for alternative income streams to supplement your monthly salary. After all, the more income you have, the more money you will save. Make it a purpose to earn more than what you currently earn monthly. If you are a good writer, you might consider writing to be paid as a supplement income. Alternatively, if you have a blog with high traffic, why not monetize it through internet marketing and earning commissions? Just find ways to earn more and your disposable amount will also increase.

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Track your expenditure

As unbelievable as it sounds, most of us have no clue on where their hard earned cash goes. Make it a habit to track all your expenses in a given month. If you notice that a lot of your money is wasted on binge drinking or even going out twice in a week, it’s about time to make changes. If you notice that lunches at work eat into your earnings, you might consider carrying food to lunch.

 

 

 

 


A look at money saving myths that essentially don’t work

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From time immemorial, the general belief has been in order to save money, you need to be frugal. In fact, many a people have gone as far as to state that frugality is human nature. While I might agree and somewhat disagree to the arguments put forth, the reality of things is that saving money is essential. You don’t want to wake up one day and find yourself in a quandary simply because you don’t have any savings to take care of an emergency. With that said, a lot of people have over the years been making mistakes when it comes to saving money. Such individuals operate under the false sense that they are actually saving money while in reality what they are doing is costing them a lot more. A look at the money saving myths will actually give you a clear picture of whether you are actually saving money or simply making a fool of yourself.

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Philosophy of purchasing the cheaper item

I think it comes across as natural. When we are confronted with the decision to purchase an asset, we always instinctively buy the cheaper item with the hope of saving some bucks. In any case, who would want to dig deeper in their pockets when there is a similar item at a cheaper cost? However, while this is laudable, let’s not be blind to the age old saying that cheap is expensive. That item you bought at a cheaper price could end up costing you more. You could end spending more on unnecessary repairs or it could be that the item is not durable enough. It is important you look at this aspect on a case to case basis or you might simply find your idea of saving money a myth of sorts.

Getting on the free shipping bandwagon

If you are a fervent online shopper, you will agree with me that shipping costs can go up the roof. Shipping a simple inexpensive item could attract a shipping cost of up to 10 dollars. In light of this, a good number of online retailers have devised an ingenious way to get their customers to spend more. Actually they get you to spend more through the promise of free shipping. The downside is that you actually end up spending more as opposed to saving.

The use of credit cards

The allure of reward points, cash back and even free travel has led many people to increasingly use their credit cards while shopping. While they might be under the false sense that they are saving money, the reality of the matter is that the desire to get more reward points actually push people to spend more than they actually save. This is an ingenious way that credit card companies have effectively utilized to make huge profits while making the general populace believe that they are actually saving money.

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Bulk buying

Buying in bulk actually serves to reduce the cost per unit but can also be dangerous especially if you end up buying items you don’t necessarily need simply to get discount. Imagine keeping items you have no use over in your home for a couple of months. Isn’t that wastage of funds as opposed to saving? Impulse buying has never and will never be the perfect way to save money. Make it a rule to buy what you need within your budget.

The notion that the use of cash is the best option

Well, if you have a proper budget, then using cash can be a great way to avoid impulse spending. However, on the other hand, if you just shop with cash haphazardly, you have no way of tracking your expenditure and this could actually lead you to spend more money than you had anticipated.

To sum it up, with the above money saving myths, it’s important that you escape this rut and stop living under the false sense that you are saving money while in real sense you are simply spending more!