Logbook Loan for Everybody

Logbook Loan for Everybody
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If you have a car and that car is without any debt, or rather, there are no outstanding payments open for the car, you are eligible for a logbook loan. A logbook loan is a loan where your car vehicle registration logbook is used as collateral, whereby you sign a bill of sale as if you sold your vehicle under the condition that you get it back once you paid off your debt, all the while driving and using the car as if nothing happened. Since that it is very easy to obtain this loan, the popularity of it has only risen in current months, despite the bad word of mouth.

The origin story is simple enough, people with bad credit really needed another avenue to receive some money, perhaps to consolidate their mounting debts and were unable to find anything else short of selling the car. Cars are valuable, but once you have sold your car, which you might truly need to go to your place of employment, you are out of a job as well. This scenario makes it not only highly unlikely that you sell your car, but risking trading down your perhaps borderline for traffic functional vehicle for an even less reliable specimen can be just as lethal as quitting your job altogether.

Some smart people thought about pawning a car and found legal justification in a more than a century old law pertaining to the bill of sale. Needless to say that, since the idea came from the people who were lending money, the whole scenario is drastically favouring the lenders and disadvantaging the customer, who is facing certain doom, if even one payment is late. The original fine print was even more draconian, where lenders allowed themselves powers over any and all assets the customer may have, but after some pretty nasty legal and even in some instances physical battles, the government curtailed this practice and all but eradicated any borderline unlawful acts.

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The only questionable thing that remained is the unbearably high APR rate that should have made this form of lending money not only unattractive to clients, but straight-out squash the demand completely. For some reason, arguably because of the mounting unevenly distributed wealth among citizens, rising costs of living and similar valid yet unconfirmed points, logbook loan figures are displaying a constant increase in revenue. Instead of allowing the regular people to consolidate their debts in some easier manner, the government is apparently not interested in helping people, but providing businesses and professional lenders with capacities to squeeze more debt capacities out of overly indebted public. Maybe next time you are standing in front of a voting cabin, you should think twice who you are giving your vote to.

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