Its easy for us to harp on about the negative aspects of the car log book loan, but at the same time it must be admitted that they are a legitimate financial product that deserves it place on the market like any other. It has to be up to the consumer to make a decision about which loan products to use without any higher authority telling them what they can or can’t do.

What we do need is impartial information which reveals all the facts so that we can all make informed decisions about the action we take in any given circumstance. And if someone wants to use logbook loans as part of their financial strategy when they are having cash flow problems then that should be their right in a free country.

Why Do People Use Car Log Book Loans?

There are many varied reasons why you would think about using these personal loans for people with bad credit but it all boils down to one thing and that is that they have less money than they want or desire at a particular moment. Like all loan products, the log book loan remedies a shortfall in difference between the amount of money you have and the amount you would like. As you are probably aware the log book loan is no ordinary credit, so what is it that separates it from a loan you would get from the high street bank and why are so many people interested in using it?

1. This adverse credit loan product is just about the quickest way available to get your hands on cash. If you own a car you can take your vehicle to their office to have it checked over and you can get the finance you need the very same day.

2. They are accessible to a wide range of people. Normally if you go to the bank and try to take out a loan they will do a credit check to find out what your financial history is like. If yours shows tat you have had problems with credit before there is a greatly reduced chance that you will get the cash you need. Log book lenders are unconcerned about your credit rating and won’t even check it when you apply. All they are interested in is if you have the means to pay off the loan and the fact that you have a vehicle to put down as collateral.

3. You can get access to large sums of cash. Other fast cash loans such as payday advances only allow you to get around £750 but a log book loan is usually only restricted by the value of your car. Most lenders will be willing to lend up to £25000 depending on how much they consider your vehicle to be worth.

4. Varying payback periods. You can decide how long you want to borrow for with loans sometimes being repaid after only one month and sometimes over a two year period.

5. Many local branches. Some people think that a log book loan is going to be hard to organise due to the fact that you have to take your automobile to the lender’s office but with so many branches spread all over the UK you shouldn’t have to go far to get things lined up.

So you see, the car log book loan does have some valuable plus points that aren’t available from any other type of lender. At the end of the day you have to think seriously before using any form of credit to decide whether its the right course of action for your own circumstances.

If you every feel you are being forced into using a loan because you have gotten into such a dire situation that you feel you have no other choice then it may be time to get professional financial help. In the UK your first port of call should be the Citizen’s Advice Bureau where you will find great impartial advice to help you make the changes you need to get yourself back on track.

My name is Steven and this is my story about the time I decided to use logbook loans from a well known lender on the high street. I’m not really sure what possessed my to use this product in the first place, I suppose I just felt that my cash problems had got so bad and not being very financially astute I just took the first option that came along.

It all started when I ran out of money due to being laid off at work, I knew I had another job which was starting in a few weeks with a friend so I figured that I’d have no troubles in getting things all squared up. I wasn’t thinking clearly due to having other personal issues going on at the time or I would have looked in the consequences of my actions more thoroughly.

Its easy to skim over the details of a loan agreement when you aren’t totally focused on what you are doing, and these lender make it sound like they hold the keys to your financial freedom. They like to tell you the positives but skim over what could happen if you fall behind on your log book loan payments.

Anyway, this all happened a couple of years ago. I’ve lost my job, but I start working for a friend in a few weeks and I need to get my hands on some cash to pay 2 months rent and living expenses until the money starts coming in again. So I went to see the log book lender in my car and was relieved when they said I could have the money the same day. At the time I didn’t realise how easy it is to get handed a log book loan and didn’t question the fact that they were barely giving me half the market value of my vehicle. For my £1500 car I got £800 and they took my log book as a guarantee against the possibility that I might not pay back.

My only fear when taking out the loan was that I wouldn’t get the job that had been organised and I wouldn’t have the funds to make the repayments, but that never materialised and I paid the debt off on time. My original £800 loan had cost a total of £1500 when I cleared the debt due to the high interest rates but at this point the lender decided that I had missed two payments even though I had proof that this wasn’t true. With no amount of phone calls could I convince them that they had their facts wrong and to this day I don’t know if they truly believed their own story.

Regardless, when I was at work one day the log book loans company set round the bailiffs to repossess my vehicle without giving me any prior warning. After going to the Citizen’s Advice Bureau its has been confirmed that the lender acted illegally but that I’ll have to take them to court if I want to court which would cost a fortune. With my shortage of funds this just isn’t an option so I’m basically stuck in a no-win situation.

The thing is that my story didn’t turn out as bad as many others who have used car title loans for the simple fact that my car wasn’t worth too much money in the first place. Thanks to the fact that I have a steady job I got back on my feet without too much problem but that doesn’t make it much easier to handle.

I hope my story convinces you to stay clear of log book loans no matter how desperately you think you need the cash, its for your own financial good.