Something that I wanted to report back here on this blog is a form of short-term loan that a friend of mine has taken out recently.
It’s called a ‘logbook loan‘, not something I had heard of before until my friend told me about it. It’s basically a form of short-term lending that requires the borrower to put up their car as security against the loan. My friend had a 5 year old car that he used as security against the loan.
Compared to normal high street lenders he informed me that he had access to the money within a few days and since he only wanted to borrow about £500, it was ideal as the banks didn’t even consider him as the amount he wanted to borrow was too low for them.
The kicker is that he told me the interest rate he was borrowing against. It was around 300% APR or something like that! This floored me. It was an incredibly high interest rate but my friend reassured me that it was a case of the pros and cons and that it suited his situation perfectly.
He told me that the secret to using these loans is to pay them off in full as soon as possible. This way the interest rates accrued is minimised and you won’t get into trouble. I did notice in the media, and no-one who watches the news can not notice the media about the ultra high interest rates of these types of loans. They however tended to focus on the payday lending industry of which logbook loans is a similar to but with a lower interest rate. I wonder whether logbook lenders will end up in the media soon as well?!
Welcome to our website, 1337pwn.com. We are 3 good friends who have decided to each write for this blog as and when we feel the need to express ourselves or our thoughts. We won’t post often or much as we each lead very busy lives but hope to write some good stuff when we get down to it.
One thing I would like to write about or comment on is the State of the Union address by President Barack Obama on tuesday. I’m (‘W’) and live in the UK and watch the address over the Internet.
I must say that if I were an American, I would probably feel quite good about things. Although life can seem hard, thinking over the past few years and some of the accomplishments your country have achieved, you should all be quite proud of yourselves.
From my own personal perspective as an English guy (so I don’t really understand how your country works) but what I do see is that there is a lot of political bickering going on (as one would expect) but to the detriment of the everyday Americans. I guess something that comes to my mind the most is the so-called ‘Obama-care’.
From my point of view over the seas, it seems like a fantastic initiative, one that would and has benefited millions, yet, it is constantly being challenged by the Republicans. Why? I don’t get it. Again the Republicans seemed to have caused a lot of issues when they blocked some sort of federal funding several weeks/months ago that caused hundreds of thousands of government workers to stay at home and not get paid! WTF was that all about?! I’m surprised there wasn’t a huge mass rally of protest or anything.
Anyway, the State of the Union address I thought was very uplifting and a speech that should give Americans hope that things are only going to get better. I certainly felt good inside watching it. Perhaps change has been slow over there or the promised revolution never occurred, but as people, as individuals we each need to take collective responsibility for our own lives and not always look to our governments to make things better. Sure that can make things better and provide a framework, but it is each of us who has to grab hold and take advantage of any opportunities open to us. If there appears to be none, then go create some. You are supposed to live in the land of the ‘free’, and aspire to the ‘American dream’ (whatever that is), and I hope you all take responsibility and action to get what each of you deserve.