Many people have probably still never heard of the log book loan, but those that have will wonder why I refer to it as being a risky form of credit. That is unless you have actually had to make use of this loan product at some point in the past. If you have handed over your log book to a lender in exchange for cash then you will know the pearls involved in their use.

Log book loans are renowned for have high interest rates, something that everyone expects form an emergency credit product. What they don’t expect is the speed at which the lenders are at the doorstep to collect your vehicle if you fall behind in your payments. You might take out one of these loans when your cash flow situation is good, but what happens if you lose your job before you have finished your repayments? Are you willing to lose your car as well? Think carefully before putting any property that you own on the line for a secured loan.