In this economy, taking out log book loans to make some money has become a popular option among the British. While loans secured on cars may be the right choice to give your business a kick-start, increasing your debt only to buy things may lead to further financial problems.
According to The Globe and Mail data, more and more people buy things they can’t afford using loans and cars. Buy a new car and you’ll have to spend on maintenance and fuel, not to mention that resale value is likely to be zero. Moderate monthly payments don’t mean that the total interest bill is also moderate.
You can be wiser in spending your borrowed money better – even improving your bottom line.
Here are a few ways to spend the borrowed money wisely to generate revenue.
Pay off your credit card balances
It’s a good idea to bring your debt level down by paying off credit card balances. Remember to get current on all the due credit card bills as well. After doing that, you’ll have an improved credit score.
Start an emergency fund
Either for business or personal purposes, building up emergency fund can help you in many ways.
If you have not been saving up for a rainy day, put some money aside for a possible financial emergency. Should any unexpected expenses occur, it will be easier to find the required sum without sabotaging your monthly loan payments.
Make an extra loan payment
Did you know that you can pay more in advance for your loans?
By paying extra in advance, you may reduce the total interest amount or even shorten the life of the loan. However, it’s important to make sure that the extra payment goes for the principle of the loan, or it may facilitate your next payment due date.
Invest in your business
More often than not, starting up a business requires you to invest some amount of money.
Spend as much as necessary to kick-start your business if you’re facing financial troubles. This may help you increase your revenue and pay off faster.
The key to making the most of your auto loan is taking care of responsibilities first and enjoying the money left after doing that. Clever investment is also a great money-saving option.