Uncovering Logbook loans


If you have never been in need of an emergency loan, you might not fully appreciate the phenomenal role that logbook loans play in the contemporary society. Poor credit rating is a problem that afflicts many UK citizens and which has been a thorn in the flesh in so far as getting approved for a phone contract or loan is concerned. In the now, getting access to a loan or even a simple phone contract is pegged on how good a person’s credit score is. The result has been that those who with a less than average credit score are often stressed and feel like second class citizens when availing a loan or a phone contract.


Before bad credit logbook loans uk became a reality, it was common for mainstream lenders and mobile phone providers to avoid those with bad credit like a plague. Thanks to the unveiling of logbook loans, those with a less than stellar credit score can now apply and get approved for a loan without any challenges. Essentially, logbook loans are secured loans in which a person’s car is used as collateral for the loan. The rules of engagement are quite simple and clear when it comes to logbook loans.

A person needs to be an adult of 18 years or beyond, to be of sound mind, to be in employment, to reside in the UK and to be a citizen of the UK. What this simply means is that a person cannot be considered for a logbook loan if:

  • The car they set up as collateral is not registered in their own name
  • They do not reside within the UK
  • They are not in any form of employment and therefore do not receive income
  • They are below the age of 18 years
  • They do not provide proof of address
  • They do not provide ministry of transport certificate
  • The car has financial attachments

With the advent of the internet, applying and subsequent processing of a logbook loan is done in record time. What this essentially means is that a person can apply for a logbook loan online from the comfort of their offices or even humble abode and get access to their money within 24 hours. The application process is pretty simple and straightforward however emphasis is placed on a person finding a UK logbook loan lender that is reputable, credible and reliable.


Are there any risks associated with bad credit logbook loans?

As is with everything, there are two sides to a coin. The number one risk of logbook loans has to do with the fact that there is a high probability of losing possession of your car especially if you are unable to furnish your loan. A logbook loan lender can dispose off your car in order to recover the money they advanced to you. Secondly, because no credit checks are done, logbook loans tend to attract high interest rates hence making them more expensive as compared to ordinary loans. It is therefore important that you take this into consideration before applying for a logbook loan.

Negative effects of debt


Debt, it is said, is like a chronic illness that never goes away. It persists and if something is not done, the problem can never go away. If you are sick, the only way to get better is if you seek treatment. On the same wavelength, you can only become debt free if you take certain actions geared towards attaining zero debt. From time immemorial, debt has always been a thorn in the flesh. When you are in debt, you are constantly stressed, lack peace of mind and at times you might even invite a sickness as a result of too much thinking.

Even those who were straightforward individuals known to do things above board might be forced to become dishonest and resort to lying, cheating and even stealing with the sole aim of eliminating their debt. In light of this, what are the additional negative effects of debt?


If you live in a rented house and you are unable to pay rent or have fallen behind a couple of months, eviction is a reality. People get evicted from their homes and even offices because of debt. Inability to make payments on time is a time bomb and within no time you will find yourself on the streets.


You don’t need to be reminded that thousands of UK citizens file for bankruptcy on a daily basis in order to get relief from debt. The constant nagging calls from creditors, lack of peace of mind and the constant pressure leads people to seek for protection under the law by filing for bankruptcy. Filing for bankruptcy gives individuals relief from debt but ultimately taints their reputation.


Eviction is not the only thing you need to worry about when you are unable to pay rent. If you have a mortgage that you cannot pay for, foreclosure is a reality you will be dealing with. You will end up losing your home and becoming homeless which of course will make you even more miserable.

Garnishment of wages

As if not being evicted is enough, some creditors seek to garnish your wages by going to court and seeking to have your paycheck paid directly to them. Imagine working for a whole month and then instead of you getting the paycheck, your employer gives all your wages to a creditor! What could be worse than that?

Emotional instability

Even if you are rich, debt can suddenly make you sad and unhappy not to mention being embarrassed. We have seen people who were doing very well lose everything they owned because of debt. Some lose their cars, their homes and their properties are auctioned in order to pay creditors. When this happens, happiness becomes a precious commodity and the negative publicity from press takes its toll.


Suicidal tendencies

Believe it or not, individuals who are deep in debt tend to entertain suicidal thoughts. To them, dying is the only solution to debt. Some develop depression, keep to themselves and rarely interact with others. Such people feel as if suicide is the only way out and some have taken their own lives unfortunately.

In light of the above, we can say that to be in debt is never a pretty thing. It is for this reason that great emphasis is placed on the need for people to be financially prudent, live within their means and get into debt that they can manage.

Simple ways to Getting out of debt

stop debt!

Getting out of debt is without a doubt the number one New Year resolution for every individual deep in debt. Ask anyone who is struggling with debt what their new year resolution is and they will always tell you that they are resolving to be free of debt before the year lapses. While it’s easier to state, the challenge is in becoming debt free. Well, the truth of the matter is saying you want to be debt free is one thing and putting in place measures to achieve the same is something else altogether. To be debt free requires sacrifice and sticking to a plan however harsh it might be.

It means that you need to go out of your comfort zone to achieve the ultimate price which is financial freedom. Ask anyone with a huge debt and they will tell you that they never have peace of mind. They are always stressed, not happy and at times even resort to have their own company as they don’t want to interact with individuals whom they supposedly owe. That notwithstanding, the wish of every person embroiled in debt is how to ultimately get out of it and be debt free. Well, getting out of debt is not nuclear science and only requires sacrifice, determination and a well thought out plan. So how can you get out of debt in simple steps?

Desist or simply make a conscious decision not to engage in further borrowing

Unchecked borrowing is the reason most people find themselves in deep debt. To get out of debt faster, it is essential that you make a conscious decision not to engage in any further borrowing. Stop signing up for new credit cards, stop borrowing money to buy furniture simply because they look elegant or test driving new cars when you know very well that you do not have the finances to buy it. You need to make a conscious decision not to borrow and stick to it. By so doing, you focus all your energy on your current debts and how to become debt free.


Establish an emergency debt

Well, you might not understand why it’s essential for you to establish an emergency fund but the reality of the matter is that we live in an uncertain world. An emergency can occur any time and you need to be cushioned. If you don’t have an emergency fund, you will be forced to borrow in order to attend to it. If your goal is to get out of debt, your sole objective is to establish a buffer between you and any kind of debt. By so doing, you no longer rack up more debt but rather focus on becoming debt free.


Work on a realistic budget

If you are deep in debt, it is important that you scrutinize your lifestyle and find out where there is wastage. What unimportant things do you spend most of your cash on? Are you a spendthrift who more often than not engage in impulse buying? If that’s the case, create a realistic budget and stick to it. If you have many subscriptions, it might be time you toned down. If you go out or eat out every week, you might want to consider putting that off until you are free of debt. Focus on eating homemade food for a while and channel that money towards paying off your debt.

Debt organization

It is essential that you organize your debt from the largest to the smallest. Endeavor to pay off high interest debts without failure and if possible consolidate all your debts so that you be dealing with only one debt payment per month. You can seek for expert help to assist with organizing your debt if you find the going tough. The idea is to ensure that you get out of debt as fast as possible.

Most common reasons why people get into debt


Granted, debt is not something to be happy about. In any case, individuals would do anything not to get into debt. Unfortunately, that is not always the case if the number of people deep in debt is anything to go by. We all have read, encountered or even personally know friends, family or colleagues who have filed for bankruptcy as a result of debt. The fact of the matter is, there are individuals who get into debt because of imprudent financial management, others because of unforeseen circumstances such as a job loss and others because of a wrong investment. Whatever the case, debt is not a badge of honor and is a state that everyone loathes. In this regard, what are some of the most common reasons as to why people get into debt?

Expensive medical bills

Someone might argue that with the availability of medical insurance, debt as a result of expensive medical bills should be a thing of the past. However, the reality of the matter is that not everyone has a medical cover and as a result, when they get ill and hospitalized for a prolonged period of time, expensive medical bills might plunge them into debt. Even those with medical plans are not safe as the plans cover 80% of the costs and the individual covers the remaining 20%. Prolonged hospitalization in this case can make a person to get into debt in order to pay their medical bills.

Job loss/unemployment

If you have no income or you suddenly lose your job, meeting basic needs become a herculean task. You find yourself taking things on credit, unable to pay mortgage, credit card bills, car loans, school fees and so on and so forth. The only logical means to meet basic needs is to get into debt. Those who were in employment and suddenly get laid off find the going tough especially as their savings is getting depleted and as such might be forced to get into debt as a way of making ends meet.


Most people are under the illusion that a divorce is all about sharing assets in half. However, what most people are unaware of is that if a spouse is deep into debt and the divorce is not yet finalized, creditors will always come after them to recoup money owed by their partner. That aside, the divorce process is a lengthy one not to mention expensive and therefore at the end of it all, a person might find himself in debt.


Predatory lenders/sharks

You probably have come across these types of lenders who promise to offer loans to individuals who can’t get access to loan from mainstream financial lenders. Most of these lenders are predatory and simply prey on desperate individuals to offer them loans at extraordinarily high interest rates. The result is that a person soon enough finds themselves unable to repay the loan and as such get deep into debt. As if that is not enough, such predatory lenders never hesitate to auction the borrower’s property to recover their highly priced loans hence making the borrower get deeper into debt.

To sum it up, the above mentioned reasons have led most people across the globe to find themselves grappling with debt. People have to survive and when they don’t have the means, getting into debt always seems like the next best alternative. However, the situation is not as bleak. If individuals prudently managed their finances, developed a saving culture and took to investments when financially secure, getting into debt would be a thing of the past. Individuals across the UK should always work towards attaining zero debt at all costs.