It is not uncommon to face a situation where we are in need for some extra money to buy a valuable asset like a car or house which we cannot afford only on the basis of our monthly income. In other cases, we may also face the need of some extra cash for an emergency. In such a situation, it is always beneficial to take a loan from a reputed creditor who would charge you the minimal market rate of interest and would not involve any hidden charges or costs.
Depending on the amount of loan required as well as the purpose for which it is required, there are several different kinds of loan products as well as lending agencies in the market. Before going for a loan to any lender, you should always make a market survey to decide which is the best loan for you and which lender you should take it from.
Log Book Loans
One of the simplest and quickest loans that you can take to meet a short term emergency need for cash is a log book loan. Detailed information on log book loans is available at www.logbookcalculator.com. Essentially, log book loans are given against the security of your car. This loan is particularly convenient because a car is one asset which everyone would generally have in his or her ownership. Moreover, when you take a log book loan against your car, you do not have to let go of the car, but rather an encumbrance is created on it which will go away as soon as you pay back the loan amount.
Some essential points to keep in mind for log book loans are as follows:
- You must be the legal owner of the car against which you want to take the loan. For proof of ownership as well as current possession, you must have all the documents ready.
- The car should be fully ensured as well as registered with MOT. You should also make sure that there is no previous financial encumbrance on the car.
- Along with the car as security, you will also be required to give proof of your monthly income so as to assure to the lender that you will be able to pay back the loan money.
- The amount of loan will vary according to your need as well as the value of the car. However, you can generally avail a loan of up to 65% of the value of the car as a log book loan.
- The lender will also sometimes choose to inspect your car before approving the loan. This is to make sure that the car is in a saleable condition in case you default on payment of the loan.
- The repayment of loan is through equal instalments on a monthly or weekly basis depending on your capacity to pay. However, log book loans are generally more flexible than other types of loans and you are at complete liberty to fix the time period, amount of instalments and number of instalments. You also have the option of overpayment so as to get rid of the debt burden in a shorter time.
Debt management solution through Trust Deed
If you have taken a number of loans through various sources, whether they are short term loans or long term loans and have not provided any security to the creditors against them, you fall in danger of being declared bankrupt. While being declared bankrupt means that you do not have to pay back the debt anymore, it affects your credit standing in the market in the worse way possible.
An alternative way of managing your debt is through a Trust Deed or an Individual Voluntary Arrangement. Both these products provide for an arrangement with the creditors so that part of the debt is written off and the rest is repaid through affordable monthly instalments while the interest rates are frozen. These are two of the most popular debt management solutions, although they do create some obligations on the debtor. For detailed information on the workings of a trust deed as well as the pros and cons of entering into one, you can visit our website debtadvisoryscotland.net.