For about 15 years, the number of logbook loans in the UK has grown from 3000 to over 40,000. Many people with a poor credit score in the UK get their requests for loans declined because they are high-risk parties. Though there are many alternatives they can turn to, logbook loans are preferred because they are easy to process and are approved very fast. However, the loans are very risky and have been associated with these very serious problems;

  • Sinking deeper into personal debt
  • Further damage to personal credit report score
  • Recovery and auctioning of family car
  • Breaking up of families
  • Stress and depression

Because of the immense dangers that can result from logbook loans, the borrower must understand how to handle it from the beginning to the end. This post outlines four most important skills that you should sharpen when seeking a logbook loan.

Negotiating skills

Logbook loans are not protected like hire purchase deals. Because of this, the lenders are free to craft agreements and optimize their profits. As a borrower, you need to have the right negotiation skills for driving the highest value for money. Using the negotiating skills, make sure to carefully review the loan agreement and identify all the punitive clauses. For example, you should check for the following;

  • Very high APR
  • Punitive clauses
  • Oppressive recovery procedures
  • Poor flexibility

Do not stop at looking the outlined issues. Check with other dealers to understand what they are offering and insist on getting a better deal. As a business, the logbook loan dealer will work also negotiate with you to agree for a lower APR, remove punitive clauses, and add some flexibility.

Budgeting skills

After signing the logbook loan, the lengthy repayment journey commences. This is the point many people get it wrong and plunge deeper into financial crisis. Notably, many people going for logbook loans already have very poor credit score resulting from other credits and loans. Therefore, you need the right budgeting skills to spread the resources well and meet every requirement. The budgeting skills will come in handy in helping the following;

  • Planning for the most important expenses
  • Adopting the right debt repayment strategy
  • Selecting areas of austerity in personal lifestyle
  • Regular review of personal progress in debt clearance and focus on financial freedom
  • Setting budgeting targets in emergency and savings

Management skills

As a borrower, the responsibilities bestowed on your shoulders are very many. At home, you have to meet all the family requirements while productivity must be enhanced at the work place. When all these responsibilities are added to the monthly logbook repayment considerations, it is possible to suffer from fatigue. Therefore, you must become a good manager. Make sure that all weekly tasks, responsibilities, and requirements are carefully captured in the diary and reminders. You should never forget to make timely repayment for the logbook loan.

Entrepreneurial skills

One question that every logbook loan dealer must ask is how they have ended at the precarious position. In many cases, this can be summed up as limited resources. If you rely on the salary alone and issues that need more money than the revenue, there is a likelihood of rushing to the logbook loan. However, you cannot simply wait to sink deeper with time. Getting the right entrepreneurial skills will help in defining and creating realistic sources of revenue. For example, you can put personal skills to do additional tasks for extra revenue.

  • You could start a part-time online job to run after work
  • Consider opening a small family business for your spouse (a good example is starting a baking unit to operate from your home)
  • A mechanic with a big company can look for a part-time job in local garages over the weekend
  • Start a blog in your niche of expertise (a fitness trainer can run a blog in weight management, obesity, and healthy eating)