Logbook loan

The Secret to Negotiating for a Great Logbook Loan Deal

When people turn to logbook loans, the chances are they have been denied credit from conventional banking institutions because of poor credit score. Logbook loans are easy to get, and the amount is only limited by your vehicle. However, because of previous trial and failure to get credit elsewhere, many people are exhausted to the point that they rarely bargain for the best value. In this post, we bring you top secrets for negotiating the best deal with a logbook loan company.

Compare quotes and share them with the company of choice

The first and most important thing is ensuring that you pick the right logbook company. Take time to evaluate the companies offering the loans in the UK and compare to get the logbook loans quote that has the best terms. The focus here should be identifying the company with the lowest APN (annual percentage interest) and working with it. However, even if the company of choice does not have the lowest APN, make sure to demonstrate the cognizance of companies with better rates. Go to the extent of showing the willingness to walk away.

Just like other businesses seeking to cut deals for higher profitability, the firm of choice will not let you get away. One client, Denison Edgar applied the strategy right to have the APN lowered from 212% to 139%. Though other companies were offering lower rates, their terms and conditions were very strict. Therefore, he selected the company with higher rates and better terms; and then used another logbook loans quote to negotiate a better deal.

Insist on having punitive clauses on recovery policy redone

Because of borrowers’ behaviour of not comprehensively checking on all terms and conditions, some logbook companies often include punitive clauses. It is, therefore, critical to read through the entire agreement and pinpoint the sections that are punitive. For example, if the agreement indicates that the lender can come for the car within the first month’s default, insist on getting the section reviewed. No lender will agree to lose a client because of a single clause.

  • Consider including a clause such as the lender can take away the car if the loaned fails to remedy the first or second default. This means that in the event that your salary is late, the lender will not take away the car because you have time to remedy the issue.
  • You should also negotiate to include room for renegotiating the entire deal. For example, if you are paying a total of £150 every month and it is becoming difficult, adjustments with a specific margin should be acceptable.
  • The lender should also be ready to work with a lower rate if you source money elsewhere and clear it faster. For example, if you took £20,000 to repay in 24 months and in the middle of that time you get cash to clear the remaining debt, the lender should be ready to rework on the interest. Make sure it is included in the agreement.

Create a line of repayment direct from your salary

Instead of taking the salary and making the payment to the company; why not leave the load to your bank? This will help to maintain consistency and reduce the temptation of using the money in other ways. With a direct line of payment, make sure you are in regular communication with the lender to win his goodwill during the repayment period.

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Get out of debt

Three Mistakes to Avoid When Trying To Get Out Of Debt

While falling into debt is very easy, getting out of it is a mammoth task. Some people find it so difficult to get out of debt that they take years or never manage to. Well, the saying that only the rich can live debt free no longer holds! You too can get out of the debt that has plagued you for years.

Think of a strategy like the snowball method that helps you to attack the debts starting with the smallest and then gains momentum to clear even the largest ones. Besides, you might also find it necessary to consolidate the debts into one loan for convenience, reduced rates, and peace of mind. Therefore, it is not impossible. While you ponder on the best strategy to use for clearing debts, here are five mistakes that you must avoid at all cost.

Starting to pay the debt before having a budget

The biggest mistake that you can make when planning to repay debts is starting without a budget. To help clear the debt, you must be able to identify excesses and cut them to direct the money towards addressing the debt. Working without a budget simply throws money into clearing debt without a clear strategy that could end up having no effect. It is important first to identify the right strategy, work on a budget, and maintain strict discipline when you set off repaying the debt.

Not factoring personal expenses in the debt repayment plan

While the main objective is clearing the loan, you must be realistic with the adopted approach. First, you must cater for all the important expenses such as rent, food, transport, and medical costs. In fact, we advise people not to throw all the reserve cash to clearing the debt but to establish a separate reserve that can be used to handle unexpected expenses. For example, if after cutting on expenses you have an extra £ 100; it is advisable to direct £50 to clear your debt and to put the remaining £50 to a reserve fund. In the event of an emergency during the debt clearance period, you will not be forced to sink deeper into debt.

Consolidating loans without addressing the root causes 

One of the best strategies for getting out of debt is debt consolidation. The method is very effective especially when the new loan has a lower interest rate. However, one underlying issue that must be addressed before taking to loan consolidation is checking into the root causes. Many are the times when people consolidate debts but fall into the same trap six months later.

Find out what caused the debts and change your lifestyle completely. For example, if the debt resulted from overspending on the credit card, one can consider doing away with it entirely. There are other methods such as e-wallets are equally effective and only allow you to spend what you have.


Success in getting out of debt demands adoption of the right strategy and strict discipline. However, the outlined mistakes can compromise the ability to plan, follow your plan, and maintain the requisite consistency to the end. Make sure to avoid them and review the progress of the adopted strategy regularly to ensure that results are within sight.



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How to Get Out Of Debt Using the Debt Snowball Method

For many people, getting out of debt appears impossible. Having been in debt for many years, even following the strictest method of debt elimination can appear monumental. However, one method that stands out from others is the snowball strategy. Unlike others, debt snowball method is aimed at creating noticeable results at the earliest possible instance and building momentum to clear other debts.

How the snowball strategy works

  • Starting with smart budgeting

It is important to note that proper budgeting is one of the core components of using and succeeding with the snowball method. This is because the budget allows you to see where the money goes every month. It is from the budget that you can identify excesses and nip them to help reduce the budget. For example, you could cut the daily transport and meals costs through cycling to work twice every week and carry lunch three days every week.

  • Make a complete debt list

To get the snowball rolling, you have start by creating a complete list of all debts so that you can start clearing them from the smallest to the highest. At this point, it might also be crucial to reach the creditors and renegotiate the loans in order to get the least amount that should be made every month.

If you have the following debts, make sure to organize them in order of size;

  • £350 medical bill (‎£40 payment/ month)
  • £2,500 credit card debt (£60 payment/month)
  • £3,000 car loan (£14 payment/month)
  • £10,000 student loan (£56 payment/month)

Note that the target is attacking the loan with the smallest amount and clearing it as fast as possible. Because you have already worked on the minimum amount that should be paid every month, add the additional amount that you saved after cutting on expenses. For example, if you can manage an extra £20 after paying the minimum amount, and can raise an additional £15 after slashing expenses, it means that the medical bill will be attacked with a total of £75. The ultimate effect is that the medical bill is cleared in about 4.5 months.

The next step will be adding all the £75 to attack the next debt. On the 5th month, you will be attacking the credit card loan with a total force of £135 which will help you to clear it faster.

Why the snowball method will work for you

  • The ultimate effect of the snowball method is that you will get the entire debts cleared off.
  • The momentum that builds after clearing the first few debts becomes monumental and will help to clear all the remaining debts to leave you debt free.
  • Because you are attacking the loans starting with the smallest one, you get the motivation that the debts are actually getting cleared.
  • Because the process involves smart budgeting, you will get through the debt a more Knowledgeable person. For example, the important trick of cutting on costs will help to address any financial issue in future.
  • This is a great way to address poor credit score because debt is one of the main factors that pull it down.


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Debt stress – how to cope and get through it

If you were to ask any living human being, their ultimate desire is to make lots of money and live without a care in the world. When you think about it, we spend many hours, days and weeks of our lives on earth thinking about money, how to make it and ultimately spend it. While some of us are wise enough to live within their means, some of us choose the dangerous path of living large while piling up copious amounts of debt. The resultant effect is debilitating stress, depression, anxiety, fear just to mention but a few. That said, how can you relieve stress associated with immense debt? How can you cope and ultimately get out of a situation that could ultimately bring your life to a screeching halt?


To deal with debt stress, you need to accept your situation and face your demons. Being in denial won’t help you and it’s therefore about time you took stock of how deep you are into debt and put in motion strategies of getting out of it. Accept that what you are dealing with is dangerous and the only way to get out of it is if you fully accept your predicament and make efforts towards reducing your debt. The more in denial you are, the more you are likely to fall into further stress and depression.

Plan, come up with a budget and stick to it

You might have noticed that the very reason you are deep into debt is because you spend without planning. You probably spend lots of money on things you don’t need to impress people you don’t like or simply live a life you can’t afford. The only way you can seal loopholes, spend money wisely, save more money and reduce debt is if you take measures to come up with a budget and stick to it. It is never too late to start afresh and all you need to do is simply make up your mind that from today henceforth you will be planning for your finances and stick to the budget you create.


You definitely cannot deal with stress associated with debt if you are negative about life and have a bad attitude. The world does not come to an end simply because you are heavily indebted. Remember that many people have been in your exact position in the past and having a positive attitude is what got them through. Take a moment to think about the good things of life and how you are not supposed to give up simply because you are going through some problems. Sacrifice and give up some comfortable things you love doing for the sake of doing away with debt.

Keep yourself busy

Avoid being idle and thinking too much. Instead, be engaged with activities that affect you positively. For instance, form a habit of exercising and working out. After all, it has been found that physical exercise actually help your brain produce chemicals that make you happy. You don’t need to sign up with a gym and spend more money while at it. You can actually exercise at home as there are many exercises you can comfortably do from the comfort of your home or even office.

In conclusion, debt need not be a cause of your anxiety, stress and depression. With a positive attitude, a good budget and the will to forego some luxuries you are used to, you can actually get out of it within no time.


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