Car title loans are a saving grace for many in desperate times. Since it will not help you during a job loss because you have to provide proof of income, other means of obtaining funds would have to be used in that instance. Auto title loans must be on vehicles that are paid off and have a clear title. The repayment plans for these loans are an installment type of loan where you pay back smaller amounts over a spread out period of time.
Emergency Medical Treatment
If you or an immediate family member has a medical emergency that requires payment immediately, an auto title loan can be obtained rather quickly to get the funds that you need. Services such as having a cast put on, requiring special testing, and an unplanned doctor’s appointment or to pay for expensive medication may require more funds than you have available. Medications can cost hundreds, for a single prescription.
Bereavement Flight
An unexpected death in the family may require travel. The fastest way to get to your family is flying. While some airlines do offer bereavement fares, they are really not a big discount at all. Your best bet of obtaining the funds you need is to obtain a car title loan. The additional amount over the cost of your plane ticket can be used for expenses while you are with your family or can be saved for your return home to help supplement the deduction in pay if your employer does not offer bereavement pay.
Pay Rent/Mortgage
If an emergency or job loss of your spouse has left you short or completely unable to make rent and mortgage payments, an auto title loan is a good option. Depending on the value of your vehicle, you may be able to borrow enough to make two or three payments to help get ahead a little. The additional funds after making the payment might help with groceries if you are also struggling to put food on the table.
Cover Utility Disconnections
Utilities, especially in the summer and winter months, can get quite expensive. The significant increase can really cause a big strain and you may even end up not being able to pay. Of course, there are assistance programs in most local areas, but these do have income restrictions and are often out of funds. The car title loan can help to provide the funds you need to pay these high bills and help you get ahead a little bit.
Car title loans should not be used for frivolous reasons such as vacations, to go gambling or just for some retail therapy. Use these loans responsibly and remember there are requirements for such loans. Irresponsible borrowing leads to unneeded debt, and eventually it piles up. Yes, these loans are for emergency purposes but you have to determine what a real emergency is. Flying out to see the last concert by your favorite music band is not an emergency, just as an example. When you have bad credit and your car is the only thing of real value that you own, consider the car title loan.
Thanks for explaining that a car title loan is and when it should be used. Last year, my family was in a pretty tough financial situation that necessitated using a title loan. We have since paid it off and are back on our feet. That loan helped us, but I agree with you that loans like this are for emergencies and not for frivolous spending. Thanks for the info!
When my grandfather had a medical emergency which requires payment immediately, we chose to use the car title loan. It was obtained rather quickly to get the funds that we need. After trying to pay all the principals and interest on time, we have not yet faced with any issue.
Once i was unable to pay my home rent, at that time Title Loans helps me a lot. It’s really useful for me, no problems with the loan.
I definitely agree with only using title loans as a last resort. If a consumer sees a clear path to paying off the loan in a short period, it can be a lifesaver when things come up. If there isn’t enough income to pay off the loan in 30 days or so, these can turn into nightmares. It’s best to walk into title loans for a short duration and only as a necessity. After all, you are putting up your car for the money!
Well said nicely explained, this gives an idea who are thinking about getting a title loans whether it is the right choice
New cars are one of the most overrated overpriced things out there. It loses so much value as soon as you drive it out of the dealer. If you are able to get around without a car, or have 1 car between 2 people, that’s a much better financial choice.