Consumers more upbeat about their finances

Many consumers are currently finding it hard to access conventional loans, but with the help of car log book loans, more people are able to get the funding they need. There are lots of reasons why individuals access money in this way. Often, they have specific purchases in mind when they apply for the finance. For example, in a lot of cases, consumers are eager to revamp their properties or pay for holidays.

When people are worried about the economy and their future personal finances, they tend to be less inclined to rely on credit. However, it seems as though individuals in the UK are feeling upbeat when it comes to money issues. According to a Power Report from Lloyds TSB, consumer sentiment improved in May compared with the previous month.

 The firm noted that the optimism reached its highest level in over two years during the 31-day period. The percentage of people who perceived the UK’s economic situation to be “not good at all” fell from 43 per cent in April to 41 per cent in May. Meanwhile, 54 per cent of the individuals polled considered their personal financial situations to be “excellent, very good or somewhat good” in May. This was a rise from the 53 per cent recorded during the previous month.

 The young may be among the most likely to take out car logbook loans. Lloyds TSB revealed that 61 per cent of people aged between 25 and 34 said they were in an “excellent, very good or somewhat good” financial position.

 However, the firm also found that the cost of living continues to take its toll on consumers. The proportion of people relying on at least three-quarters of their monthly incomes to cover household bills and essential items increased to 47 per cent, which was the highest level recorded since January of this year. Also, 79 per cent of individuals noted they were very concerned about rising gas and electricity prices.

 Responding to the figures, Lloyds TSB chief economist Patrick Foley said: “The recent reports of a return to growth for the UK economy are being reflected in improved consumer sentiment, which is good news as better confidence will help to sustain the economic recovery. A gradual easing in the squeeze on consumers from essential spending is helping, although with energy bills increasing again, the improvement in spending power remains modest.”

 Anyone looking for additional money and who owns a vehicle may benefit from investigating the option of a car log book loan. These agreements enable people to borrow against their cars in order to unlock some cash to resolve short-term funding gaps. In general, consumers can borrow up to 70 per cent of the trade value for their vehicles and the loans can be taken out over varying lengths of time. For the best results, it is important that individuals shop around to find the most impressive deals and many people choose to conduct their searches over the web. This is a quick, convenient and effective approach.

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