Logbook loans are popular not only because the financial product is easily accessible but also due to the controversies surrounding it. Yes, logbook loans are quick and easy to avail but it also comes with high risks and high interest rates. For these reasons, many financial experts shun the personal loan.
Despite the warnings, however, borrowers are not to be discouraged. Many continue to avail the loan for the simple reason that it fulfills its promise of quick cash. When you’ve bumped into a financial emergency and you have nowhere to get quick cash from, logbook loans offer an easy way out.
Granted that you own your vehicle and you meet the eligibility criteria, you can avail loans from £500 to £50,000 or up to 70% of your vehicle’s official trade value in general. With these loan offers, you can practically meet a wide range of personal needs from overdue bills to rent payments, medical expenses and even major investments.
But like with any other type of debts or loans, there’s always a flip side. For logbook loan’s case, it’s the high interest rate. On average, the loan is advertised to come with an average representative APR of 400%. Convert it into cash and that’s a lot of money to pay for a personal loan.
Other than the high interest rate, there’s also the risk of repossession to worry about. In the event that you can’t repay the loan, you may lose your car for good. A sad consequence nobody wants but still happens to many logbook loan borrowers. Read more about this at http://www.simplelogbookloan.co.uk/
So are logbook loans worth it? If you’re only looking at the high cost, the answer is no. But if you look at the entire picture, there are cases when logbook loans make sense. As borrower, it’s your job to make sure that you borrow only when it makes perfect financial sense.