Are you looking for the ultimate break? Do you ache to head overseas with your loved ones? If you’ve put all of your finances into buying a home, you may feel as though you’re stuck there with no alternative to travel. The good news is there is an easy way out of this financial stalemate: the logbook loan. This credit option sees you putting up the logbook of your vehicle as collateral in return for a lump sum loaned from your chosen agency. Handled properly, this can be a great way to finance your next family holiday despite having all your money locked up in your current property.
Crunch the Numbers
The first step is to figure out how much you need for your holiday and how much you can afford to pay back over time. After all, you’ll have to return the money borrowed once you have come back from your trip. You will also need enough cash to cover all expenses while you and your family are travelling around the world. This is why it’s important to consider all the associated costs when planning a future holiday. In this way, you can then ask your lender for the right amount of money so you can tour the globe without running out of cash too early. You can also borrow with confidence that you can then afford the monthly repayments on your return.
Since there are a number of credit agencies offering logbook loans, we recommend that you carefully research as many as possible before deciding on one in particular. Keep a lookout for the following important qualities as they will help you to choose a lender who is reliable, trustworthy and legally compliant:
• Regulated by relevant local financial authorities
• Compliant with national Consumer Credit Acts
• Transparent terms and conditions to all clients
• Interest rates, fees and charges that are fair
Remember that this is your vehicle that you are putting on the line for your holiday. If you don’t choose a reputable lender, there is a chance you could lose your car. This could compound the issues you have with trying to finance your newly purchased home which is a situation you don’t want to be in. Because of this, you should always opt to compare the qualities and offerings of lenders such as Car Cash Point before making a decision about who you are going to borrow money from. In this way, you can then make your future financially safer!
Understand the Conditions
Once you have decided upon a credit agency, you will then have to read carefully over the terms and conditions. Discuss the matter with your lender, letting them know you are planning to use the money for travel. Find out if you can postpone repayments until you return as it will be difficult for you to pay back the money if you are still overseas. You should also discuss the contract, ensuring you know about terms such as:
• The annual percentage rate (APR)
• The total accrued interest
• Repercussions if you default
• Setup, admin or early repayment fees
• The period of the loan
• The frequency of repayments
All of these will determine whether that credit option is suitable for you after you return from your overseas trip. Discuss each of these with your lender and ensure you take out a loan that is just right for your circumstances.
Pay Everything Back on Time
Lastly, it’s always important to follow the terms and conditions of your loan agency to the letter. There are plenty of ways in which you can repay your loans faster and the good news is you can benefit from each and every one of them. While you will have your home payments to consider, careful budgeting prior to your trip will mean you have the opportunity to:
• Make payments every week instead of every month
• Round up each payment to the nearest hundred
• Add in one extra loan repayment if it’s possible
By managing your money here, you can satisfy all of the conditions of your lender. In this way, you can then reflect on the great time you and your family had overseas without being burdened by excess financial pressures.
About the Author:
A company that aims to consistently provide proven and preferable short term finance solutions, Car Cash Point is one of the most ethical and responsible lenders in the UK.