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Logbook loans offer a borrowing avenue against the value of your car, albeit with distinct risks and implications. Unlike conventional loans, these are secured against your vehicle, making them a unique but potentially risky financial option.
A logbook loan involves borrowing money secured against the value of your vehicle. You essentially transfer ownership of your car to the loan provider until the debt is repaid, typically in smaller amounts compared to traditional loans. Despite being a secured debt, logbook loans lack the same level of security as mainstream finance agreements.
To secure a logbook loan, you surrender your Vehicle Registration Certificate (V5C form), commonly known as the logbook, to the lender in exchange for the loan amount. This document serves as collateral until the debt is settled. Notably, you retain the right to use your vehicle while repaying the loan.
While most debt management companies will charge a fee for access to formal debt solutions, you shouldn’t have to pay for simple debt advice. Below are some of the most common ways to access debt advice.
Logbook loans lack the consumer protections associated with mainstream finance options. They often entail additional fees and charges, with lenders having the authority to employ aggressive debt collection tactics, including involving bailiffs, without court intervention.
For individuals considering logbook loans or struggling with debt, seeking professional advice is crucial. Organizations like My Debt Plan provide free and impartial debt advice, helping individuals navigate their financial challenges and explore viable solutions.
Contact My Debt Plan today for immediate assistance and tailored debt management advice. Our trained advisers are equipped to offer personalized solutions to address your financial concerns effectively. Call us now at 0161 826 0585 or fill out our contact us form to get started on your journey to financial stability.
Tell us about your current debts and one of our experienced and friendly advisors can help you get the ball rolling.
Dependant on your circumstances and financial situation, we'll let you know if an IVA is a potential solution for you.
If you qualify for an IVA, we will take the necessary steps to set up and arrange this for you.
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Credit Score Pop Up Wording : An Individual Voluntary Arrangement (IVA) is a formal agreement with creditors to repay a portion of your debts over time, but it does have an impact on your credit score and it will be difficult to obtain further credit whilst on an IVA. Once an IVA is approved, it is recorded on your credit report and will typically remain there for six years from the date it starts.
However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.
Once your IVA is complete you will get a fresh start to begin rebuilding your credit rating.
IVA costs are charged for the preparation of your proposal and the administration of the arrangement for the full term (usually 5 years) these costs are charged from the monthly contributions you make into the IVA and are not in addition. Costs will only be recovered on approval of your arrangement and once you commence making payments to it. The fees for preparation of the proposal to creditors and calling the meeting for creditors to vote on its approval are called nominees fees, the fees for running the arrangement once approved are called supervisors fees. There are also some expenses incurred in the running of the arrangement such as the registration fee and the statutory insurance that needs to be taken by law, these are called disbursements. For our arrangements, the total of all of these is £3,650 although this may be adjusted by creditors when they vote on whether to accept. No matter what the end total of costs come to, you can be rest assured that these will be taken from the monthly payment we agree with you.
