There are many ways to gain a sum of money and everybody had their own reasons for this. Short of a lottery or scratch card win, it’s unlikely that you will be seeing that summer holiday any time soon.
But there are other ways to get some fast cash, and more often than not, the public at large do not know about it. There is an old method of securing a loan against your vehicle, and these are called logbook loans. They are secured against your cars logbook, meaning that your vehicle becomes the deposit for your loan agreement.
There has been some speculation in recent times over the value of these types of loans – what are the interest rates? Is a loan of this type worth getting?
Generally these types of loans carry a large interest rate. That is if you are comparing it to most banks, anyway. But the thing to remember here is that the loan term is designed to be much shorter, so a higher interest rate is needed to make it fair to the lender. Otherwise, a 30 day loan is not going to incur much interest and the lender would be wasting their time.
The best thing about logbook loans from the borrower’s perspective is that the money is usually in your account the same day; the application is very simple and the validation process pretty short. This is fantastic if you need to get hold of some money very quickly because, as we all know, bank loans can take days if not weeks for the application process to go through. This is a perfectly legitimate way of borrowing money but remember – you MUST pay back the loan quickly (ideally within a month) to prevent interest from mounting up. You get a fast service here with a large chunk of money, so you have to take out a loan of this type responsibly.
Used correctly and responsibly, applying for a logbook loan could be a great way of getting a large wedge of cash quickly and easily, with money appearing in your bank account usually the same day.