banner

Guide to Logbook Loans for Beginners

Most of us, if not all, have encountered unexpected emergencies and expenses at one time or another. Maybe you have overdue bills to pay, a medical expenses to take car of or a major investment you need additional capital for. Whatever your needs may be, borrowing money oftentimes is one way to meet said financial needs.

Getting approved for a personal loan if you have a good credit history is easy. But it’s a different story altogether when you have bad credit. In fact, you’ll likely get more rejections that you can manage when you have a bad credit score under your belt.

Fortunately, it’s not gloom and doom for borrowers with bad credit. A quick and easy solution for your needs is a to take out a logbook loans. You can do that at Simplelogbookloan.co.uk. But first, here’s what you need to know about the financial product.

What is a logbook loan?

A logbook loan, as the name suggests, is a type of personal loan where you use your vehicle as collateral. You still get to keep and use your car but you hand over temporary ownership to your lender. This means, your lender can and will repossess your car in the event that you cannot repay the loan back.

How much can you borrow?

Since logbook loans are secured loans, loan amounts offered are larger. You can borrow a minimum of £500 for overdue bills or up to £50,000 for other major personal needs. Lenders normally don’t require borrowers to disclose the reason for the loan. As long as you are eligible, you are welcome to apply.

How long can you repay the loan?

As for the repayment terms, you can repay the loan within 12 months or up to 36 months. Repayment is complete via direct debit deduction. Otherwise, a debt collector may be sent out to your address to collect your monthly dues.

What are the requirements?

Advertised with the promise of quick cash, it’s no surprise why borrowers are drawn to the financial product. Another advantage is the fact that requirements are pretty basic and straightforward.

To be eligible for a logbook loan, you must be of legal age, a resident in the UK and a vehicle owner. Your credit score is not a factor so whether you have a history of ccjs or defaults, you can still avail a logbook loan.

How much does it cost?

While fast and easy to avail, there are downsides to logbook loans you need to carefully consider. One is the high interest rate. It may offer the promise of quick cash but at a high cost.

The average representative APR for logbook loans, for example, is 400%. Compared to traditional personal loans that may take time to process, the financial product is a many times more expensive.

What are the risks?

You also have to think about vehicle repossession. Seeing that you secured the loan against your vehicle, there is always the possibility of losing your car hovering in the background. If at some point you can’t repay the loan, you may face repossession and probably another hit on your credit score.

Stratos-Card-App-2

Do you really need a credit card?

Credit cards are excellent financial tools when used right. Unfortunately, most consumers see it as free money. When they use it, they spend it without qualms even knowing the high interest rate and possibility of drowning themselves in debt.

With so many people stuck in credit card debt, you can’t really blame financial advisors who shun credit cards. But is it really wise to simply turn your back on them like some others do?

To answer the question, we have to talk about credit score. In today’s financial time, credit score plays a major role in most, if not all, aspects of your finances. If you want a mortgage loan, for example, have a good credit history is a requirement. The same is true for other personal loans and even applications such as a mobile phone contract. A good credit score, in other words, is critical in today’s day and age whether you like it or not.

One way to build a good credit score is to build a credit history. If you’re fresh out of college with no credit history, applying for a credit card is one way to do it. Credit cards, therefore, are useful in this respect. The trick is to make sure that you use your cards responsibly and pay them in full each month. Doing so will reflect on your credit files ensuring that you’ll get a good credit score in the end.

Rather than shun credit cards because of its high interest rates, it’s best to pick one you can use responsibly. When using the card for purchases, keep your eye on the goal, which is to build a good credit history that will help in several ways later on. Meaning keep the charges to the bare minimum, ideally below 30% of your credit card balance.

money-savings

Money Mistakes You Should Avoid for the Millenials

You’re fresh out of college and you’re excited if terrifyingly so for your first job. Welcome to the real world.

Gone are the days of cheap take out dinners, a room you share with others and insubstantial college income. You’re no longer working part time but full time expecting two paychecks that will make you small per month.

Adulthood doesn’t get any real as soon as you receive you first paycheck. You might already have planned out how you’ll spend every penny. You might even think you have a lot of money now. That may be true but it won’t go a long way unless you are smart about your money.

If you’re a millenial and hopes to achieve financial freedom along the way, here are money mistakes to avoid at all cost:

Not saving for an emergency fund

There is no better time to build an emergency fund, a fund reserve solely for unexpected expenses and emergency, than now. This fund also comes handy in case you lose your job, which you may not need to worry about yet. In any case, it pays to cover all your bases.

Stash away about 3 to 6 months worth of expenses to fall back on in case something happens. You can also start small if you think it difficult to squeeze in this habit at the moment. If you can only set aside 3% of your income per month, that’s a good enough start. The trick is to keep doing it month after month. A small amount can add up quickly over time.

Not paying yourself first

Other than the emergency fund, there’s another type of savings you should think about it. Decide how much you want to set aside per month for savings you can use for a variety of purposes. It can be for vacation, home or car down payment and many more. The trick is to pay yourself first meaning set aside the money first before anything else.

If you want to set aside 10% per month, set it up automatically. This way, it will be easier to save and work on what’s left of your paycheck after paying yourself first.

 

Not using your credit cards wisely

 

One of the most common and vicious downfalls for most consumers is credit card debt. With its high interest rate and promise of instant gratification, credit cards in most cases are disadvantageous unless you use it right.

When using credit cards, it’s very important not only to plan how you use it but also where you use it. Remember, credit cards are tools and not free money so put a tight reign on your usage if you want your finances in tip top shape.

Not taking investment risks

If financial freedom is what you’re really after, saving for the rainy day is not enough. You have inflation to think about and sadly, most savings accounts can barely catch up with it.

In order to make money work for you and not the other way around, investing your money is the key. You need an investment that will give you higher returns than what savings accounts can offer. In other words, you need to take risks in order to reap in returns.

When making major investments, the trick is to always make calculated risks. Take your time by knowing and studying your options. If necessary, seek professional financial advice to help get you started. Soon enough, you’ll be able to get the hang of things and you’ll have money working double time for you.

Boy saving money in a piggybank - isolated over a white background

How to Save More Money Quickly and Simply

If you already have savings but want to save more, there are simple and easy tricks to help you do just that. Below are some of the things you can do. Keep at it for an entire year and you’ll see that you’ll have stashed away more money than last year.

Make saving automatic

Saving when it has become a habit is as easy as ABC. If you’re struggling to make it a part of your lifestyle, you can set it up to be an automatic monthly affair. As soon as your paycheck comes in, let your bank deduct a certain percentage to set aside for savings. What’s left is for your monthly expenses.

Saving automatically sets you up for success. In essence, this is money you don’t see therefore making it easier for you to save in the end.

Eat healthy and at home

It’s also the best time to start eating healthy and at home. That means cutting down on take-outs and dining out. Start planning your meals and cook them at home. Bring your own lunch if you’re off to work. By simply doing this one change, you’ll be surprised at the amount of money you can save in a year. From groceries to medical bills, this move brims with savings potential.

Downgrade your phone plan

You might also want to consider downgrading your phone contract plan. If you’ve noticed your monthly bill getting out of hand and even if not, switching things up a bit can do wonders for your savings.

Rather than rely on your data plan all the time, take advantage of free Wi-Fi networks instead. You can also download money-saving apps to help you cut down your phone bill.

Eliminate unnecessary subscriptions

If you have a magazine subscription you don’t really fully maximize, unsubscribe as soon as you can and add the money to your savings account. Check your monthly expenses and eliminate unnecessary expenses. You might think everything’s necessary but think again. It pays to double check.

Use and bring cash all the time

If possible, use only cash when paying for something or buying things. While rather old fashioned, cash is a simple and effective reminder that you should put a tight reign on your spending. Cash offers you a tangible look of the amount of money you have as opposed to credit cards which encourages the constant quest for instant gratification.

Budget-2015-TheDollarBusiness

4 Ways to Ensure You Stick with Your Budget

When it comes to personal finance, you’ve probably heard the advice a dozen times. Master the art of budgeting and you’re on the right track. There’s just one thing most people often miss. Yes, making a budget seems simple and easy but it’s the execution most people fail at.
To help you avoid the same financial pitfall, below are tips and tricks to guide you when creating a budget you can stick with.

Keep it real

If you want your budget to work, you need to keep it real. In other words, be as realistic as you can be. Otherwise, you’re only setting up yourself for failure.

Start by grabbing a notebook and pen. Record the amount of money that’s coming in per month and all your expected expenses. Deduct your savings and work with what’s left. The goal is to live within your means by budgeting what’s left after savings to cover for all your expenses.

If the money isn’t enough, you’ll need to make sacrifices by cutting some on the luxury category and focusing on what’s necessary. If the money is still isn’t enough then you might want to find another job or a part time gig to add to your total monthly income.

Don’t be too hard on yourself

The goal is to live within your means but don’t be too hard on yourself. Yes, you should keep your finances in sync with what you’re bringing in financially but you should also leave room for small failures.

If you were not able to stay within budget this month, don’t beat yourself up. Try again next month. If it seems that staying within budget is proving to be more difficult than expected, give yourself some breathing room. Better yet, enlist the help of a financial advisor to help you during the first few months of mastering the art of making a budget.

Make a list of all your spending

In order to know which area you’re overspending and which area needs extra attention, you need to make a list of all your expenses. Every purchase you made this month should be duly and diligently recorded on your expense notebook.

From food to rent, gas, utility bills and other expenses, every penny spend should be on record. Yes, doing so may sound like its too much work but the effort will pay off eventually. You don’t have to do this forever anyway. As soon as you get the hang of things and you can stay within budget without glitch, you’re free to forego this part of making a budget.

Prepare for unexpected expenses

One of the reasons why most budgeters fail is because they don’t prepare for unexpected expenses. In order to make your budget work, you need to include a category dedicated to unexpected expenses. They don’t happen all the time but it’s best to have all bases covered if you want to stay in line.

Set aside a portion of your budget for unexpected expenses each month. In fact, it’d be better and highly recommended if you open an account solely for this purpose. You can then call that your emergency fund.

Reward yourself

When you’ve done due diligence and stuck to your budget like any good consumer, a reward is in order. This is especially important if you’ve had a tight budget and made it work. Treat yourself but without going too far. Maybe you can go out and enjoy a good night with friends. Or you can finally buy that new dress you’ve been eyeing for weeks. Or better yet, take a vacation. The type of rewards is up to you, just make sure of course it stays within budget.

moneybox

Understanding the Value of Money

If you want to get personal finance right, one of the best foundations you need to zero in first is to understand the value of money.

We live in a world where money is a necessity. It’s the currency of the world and either you’re good at handling yours or not. It’s either you’re letting money control you or you controlling money.

In any case, there’s no question to the fact that money is valuable yesterday, today and tomorrow. Other than letting you buy what you need and want, the weight of money’s importance in personal finance is in relation to time.

If you ask financial experts, they’d tell you that one of the most fundamental money principal is its time value. Put simply, the money you have today is worth more in the future when used wisely. In other words, if you invest your money today in a way that money starts working for you over time, a dollar today will be worth more in the future.

But before you do go ahead and invest your money, let’s first further illustrate what time value is. Let’s say for example that you are offered £10,000 now or £10,000 five years later. If you were like most people, you’d opt for the former option. After all, money today is always more enticing than waiting five years down the road.

For most people, receiving the £10,000 today is all about instant gratification. It’s free money they can use to shop or buy whatever they want. If you’re someone, however, who understands the time value of money, you’ll see that the same choice is correct simply because receiving the money gives you the advantage of time.

Disregarding inflation and other factors, now is better than later because you get the chance to let time work for you. You can invest the money so it earns interest over the course of five years thereby increasing the future value of your £10,000.

The trick, as you can see, is to invest the money. This is the one of the best and trusted ways to take advantage of the concept of time value for money. Based on the illustration above, money at its simplest is equal to time. It’s all a matter of making it all work for you. Calculate the time value of money and choose the right investments to make money work for you like a charm over time.