If you are running to a logbook loan lender, the chances are that your credit score is very poor. Many conventional banks will decline loan applications from people having a poor credit score because of the high risk involved. Unlike the conventional lenders, logbook loan companies in the UK do not factor the credit score when approving loans. They mainly want to know the value of the car, proof of ownership, and capability to repay.

Once the loan has been approved, the repayment journey begins. For many people, this process is lengthy and often culminates to defaulting and sinking deeper into debt. However, it need not be that way if you seek expert assistance. In this post, we look at four main ways that a financial expert can help you to complete repaying the loan, improve credit score and march to financial freedom.

Understanding the genesis of the current problem

You can only get out of the current situation by understanding its genesis. Why are you here? A financial expert will help you to appreciate some basics of finances so that the source of the problem can be identified. This is the best way to avoid falling into the same problem again.

If you have been overspending on the credit card or living a wasteful lifestyle, the chances of falling into financial trouble are very many. The financial expert will demonstrate with examples how to live within your means. He will even provide examples of people who have been in the same situation and managed to get out. This is the inspiration that you need.

Drawing the right financial management plan

Improving your credit score after taking a logbook loan can only be possible if you have a good financial plan. This means careful planning for the available revenue through proper budgeting. Financial experts help users to budget for all the monthly expenses, setting aside cash for emergency and using all the remaining cash to attack debt. If the revenue you are generating is not enough to cater for all the expenses and clear all the debts, you might need to look at areas of austerity in personal lifestyle.

Adopting the right debt management method

Most people who go for logbook loans are likely to have several other loans with different institutions. The financial expert will help you to weigh the risks that come with every loan and identify what to give preference. For example, if you have a student loan, a mortgage, and a logbook loan, greater emphasis should be given to what can result to the immediate loss. In such a situation, more resources should be directed at clearing the logbook loan while making the minimum acceptable payment for others.

The financial expert will also help you to explore areas in personal lifestyle to institute austerity measures and direct the recovered cash to clear the loan. For example, a financial expert might suggest using public transport as opposed to the family car and direct the recovered money to clear debts.

Unique methods of improving credit

Financial experts understand credit score computation so well and can help you improve it within a very short time. While the current loans no doubt contribute to the score, the history is also very important. To develop a positive history, the expert will recommend the following measures.

  • Checking the credit report with reference agencies and correcting errors.
  • Borrowing from an own account and repaying on time.
  • Consolidating debts to deal with one party
  • Taking a debt management plan

Working with a financial expert helps a debtor to understand personal finances and march towards financial freedom. In fact, you will realize that the logbook loan is just one of the main items that you need to handle on the road to financial freedom.