Logbook Loans – What are they all about?

A number of users of this website have come to us with queries about financial products that are on offer from various credit providers throughout the United Kingdom. One such product that has become very popular throughout the UK are logbook loans?

But what are they exactly?

In this article, we will unpack logbook loans in detail to further help you decided if this is a product you can make use of.

A logbook loan is aimed at people with bad credit ratings

With the economic downturn that has hit the United Kingdom since the global economic crisis of 2008, many residents of continue to suffer financially. This has led to a large percentage of the population defaulting on their credit products, missing payments on their overdrafts, credit cards, mortgages and vehicle payments.

This affected their credit rating which slowly began to dip downwards, eventually moving into a negative status. But what does a negative or bad credit rating mean? Well, if you suffer from a bad credit rating, you cannot get conventional loan products. You will be turned down time and time again for credit cards, an overdraft, a mortgage and a vehicle loan amongst a host of other credit facilities.

But that’s where a logbook loan comes in. This loan facility does not take a person’s negative credit rating into effect at all.

How does it work?

Well, a logbook loan is something you can apply for if you own a vehicle, motorbike, caravan, truck or lorry. The vehicle acts as security with the loan provider which effectively means that once you have signed the loan contract, the loan company own the vehicle until you have paid off the loan. The good news however, is that you can still use your vehicle on a daily basis!


How does one apply?

Nothing could be simpler than applying for a logbook loan. Find an institution through which you will take the loan, have them look at your vehicle to assess its general condition and the condition of its engine and based on this, your income and expenditure, they will offer you a loan amount against your vehicle.

There are a few things to note here, however.

  • You will never be offered more than 50% of the value of your vehicle.
  • Your vehicle must not be more than 10 years old. Certain companies will consider valuable older classic cars or even sports cars older than 10 years, however.
  • Your vehicle must be fully paid up.
  • You must be the owner of the vehicle. It cannot belong to a parent, sibling or a spouse. If it does, they must apply for the loan.
  • The loan company will take possession of your vehicle logbook (V5 document) for the duration of the loan.
  • You must have full and comprehensive insurance on the vehicle. This protects the loan company’s investment when it comes to theft, accidents or even damage from extreme weather.


When applying, you will need to provide a number of important documents. Take them with you on your first visit to the loan company and you can have a loan approved in as little as 24 hours. The documents you will need include your identity document (a passport or driver’s licence will suffice), wage slips for the past three months, bank statements for the past three months (six months if you are self-employed), a utility bill to prove where you stay, the logbook of your vehicle and proof of comprehensive insurance.

Are logbook loans worth it?

As someone who might have a bad credit rating, you will never be able to secure a normal loan product from a commercial bank. And yes, there are times when you need to take out a loan. In this regard, your best option is in fact, a logbook loan. Although they do have higher annual percentage rates than a regular loan, they can secure you anything from 250 to 50 000 pounds depending on the condition of your car, your income, and your expenses.

Please note however, it is imperative to keep up your payments each month. Never miss a payment as this will put your car in jeopardy. The loan company has every right to repossess your car and sell it to recoup their costs should you continually miss payments. If you are going to miss a payment, let the loan company know and together with them, you can work something out.

For more information on logbook loans visit




Aiming for a debt free Christmas

With Christmas fast approaching, it is time to begin planning for this beautiful family holiday, a time when giving someone a beautiful gift and receiving a few of your own certainly lifts the spirits. Unfortunately, Christmas is also a time when many families get themselves into debt or worse still, further into debt.  And if there is anything that is going to destroy your personal finances, debt is certainly the #1 culprit!

So how can you have a debt free Christmas? Let’s take a closer look.

Start with a budget and keep it debt free!

Ok, the first important step is to have a Christmas budget. Without planning this properly, you will invariably overspend, something you certainly won’t want to do. Perhaps the most important thing when it comes to your budget is to ensure that it is realistic!

So work out how much you want to spend on presents, decorations, Christmas lunch and all other things that you think needs to go into your budget. Now work out your income and expenses over at least three months leading up to Christmas. Any spare money that you have can be set aside to go into your special Christmas fund. Then use that fund to make your purchases!

In this way, you will steer clear of using credit cards or other forms of credit to fund your Christmas spending.


As mentioned above, you should try to save any spare cash that you can towards Christmas. Although it might be a bit late for this Christmas, start from January next year and put away a small amount of money each month into your ‘Christmas Fund’.

Why not even start a special savings account that can generate some interest as well. In this way you know that by the time Christmas rolls around, you will have a nice lump sum of money that can contribute towards all the expenses that the holiday brings.


Decide on gifts early and get them long before Christmas

Christmas shopping at the last minute and without a plan will just lead to disaster. Why? Well, the shops are so busy on the last few days before Christmas that you will end up spending too much money on the wrong gifts just because you want to get away from the hustle and bustle and the crowds. Even people that love shopping will admit that Christmas can be a trying time!

When it comes to gifts, only buy for your closest family. Your children, your parents and your siblings. There really is no need to buy something for Aunt Stella who you see once a year and who only passes disparaging remarks about your clothes! When it comes to children, there is no need for them to receive a whole range of presents. One will suffice! If you do want to buy more, make sure the additional presents don’t set you back too much money. Keep them cheap and simple and make them something practical as well, for example, clothing that they can wear in the New Year.

If you feel you have to give a gift to people outside your extended family, by all means, do so, just keep them simple and non-expensive.

Be a clever shopper

Now if your child wants the latest and greatest doll and you are dead set on getting it for her, by all means, buy it. But do not make the mistake of buying it from the first store you find it in. It’s Christmas after all and retailers are always trying to undercut each other to make that sale. So be sure to shop around and find the best deal out there. This doesn’t mean you have to go to every store and compare prices – do it online!


You may even consider ordering the gift online and having it delivered to your house, you can often make a great saving this way. If your children love PlayStation or Xbox games, make sure you download digital copies instead of buying a hard copy. You can make at least a 10 to 15% saving this way. Consider even buying gifts through online sites such as eBay.

There are so many ways that you can make massive savings by shopping with the intent to save in mind. By doing this, you will certainly drive down Christmas expenses, ensuring your savings go a long way to paying for the holiday instead of using some form of credit product, be it your credit card or bank overdraft.

So this Christmas, make sure it is a debt free one! It really isn’t that hard with a little foresight, planning, and the will to stay debt free. Your bank balance will thank you in the long run!


Financial success – the building blocks to your freedom!

Without a doubt, we live in some of the toughest economic times any generation has ever experienced. Unfortunately, uncertainty rules in the world’s economy and this is a major factor in a downturn in economic growth. Coupled with the fact that the United Kingdom still has not recovered sufficiently from the last major economic turmoil of 2008 and now the recent Brexit vote, many leading economists predict much turmoil ahead.

That said, with thought, planning and discipline, you can still make a success of your personal finance. In this blog, we will share with you a few simple steps that you can implement to help ensure financial success.

Focus is key!

Focus is a word that is bandied about in many aspects of life. When it comes to your financial well-being and making a success of your finances, it pertains to committing to only a single financial goal at any one time.

So if you have never thought about your finances seriously before, where is the best place to start? On what should you focus first? Well, perhaps the best thing you can do for yourself and your family is to set up an emergency fund. This fund can be built up slowly, even with a small amount every month. Over time however, you can make it something substantial that can then be used when you need it most – in times of emergency. And no, an emergency is not a trip to Spain for a weekend away in the Spanish sun. An emergency is just that – car repairs, unforeseen medical expenses or something similar.

Once you have established a proper emergency fund (aim for at least £2,000), it is time to find your next financial goal and start to direct your focus towards that and only that. For example, you may decide to save towards a deposit for a new car, but more on that in the next point.


In a way, this is linked to our first point above. For financial success, learning how to prioritize is key. In today’s day and age, many people are crippled financially with debt. Perhaps your first priority could be to get out of debt and get your finances on a more even keel. Or maybe you have just had your first child. Now your priority could be to establish an educational fund for your child to help fund their education.

Whatever your priority is, you will need to devise a unique set of rules and guidelines to help meet it and ultimately, achieve your goals. For example, if you want to minimize your debt you may start to use any spare cash and start to pay it into one of your loans, credit cards or overdrafts. We will look more into this in the next point below.



Coupled with both focus and prioritizing comes planning. In fact, all these steps are mutually intertwined. So how exactly does planning fit in? Well, let’s look at the example of debt again. Your planning strategy should be mapped out into steps that are easy to follow.

For example, you could decide that instead of going out to a restaurant each week, you will put the money into one of your areas of debt, such as the credit card that you owe the least money on. If you are a smoker, another simple step in your plan could be to cut down on a pack of cigarettes a week and put that money into one area of your debt as well. These are only examples, each plan needs to be tailor made for your unique situation. The point is to have a plan in place and work from there by budgeting accordingly and putting any extra money you have into paying off your debt.

So follow these three easy steps and you will set yourself up for financial success, something we can do with in the ever changing economic climate we are faced with today.