Times Are Tough Right….Considering Getting A Car Title Loan? 

Call Me!!! Let’s Talk About Some Different Options. 

Getting stuck with financial difficulties can be a real burden, but the truth is that we all face these situations from time to time. Whether it’s caused by pulling out the credit card a few too many times or from a sudden medical emergency, it doesn’t matter, because once you’ve slipped behind in your payments, it can be really hard to get back on your feet.

I Don’t Want You To Get A Car Title Loan! 

Car title loans often carry high interest rates. In some cases, these rates are significantly higher than credit cards rates and may even exceed 100 percent. While a few states have laws that prohibit such exorbitant interest rates, many do not. Car title loans are also short-term loans, which mean that they must be repaid quickly. If you are unable to make your payments, late fees raise the balance even higher, and the lender will eventually repossess your vehicle, which leads to a host of other problems.

How Car Title Loans Work 

A prospective borrower heads to the lender with the car and its title. The lender assesses the car’s value and offers a loan based on a percentage of that amount. T Borrowers can drive away with the money in less than an hour, but the lender holds on to their title as collateral until the loan is repaid.

There are two kinds of car title loans:

Single-payment loans require borrowers to repay in one lump sum, usually 30 days later, and have an average APR of 300%.


Installment loans let borrowers make multiple payments, usually over three to six months, and have an average APR of 259%

Why Car Title Loans Are Risky 

While their interest rates are lower than those of payday loans, which can have APRs upward of 1,000%, car title loans’ interest rates are by no means low. The upper limit of “affordable” is generally considered to be 36% APR. The fees and cyclical borrowing associated with car title loans make them even more expensive.

And if you can’t pay as agreed, you might lose your vehicle. In fact, 20% of those who take out a short-term, single-payment car title loan will have their cars repossessed.

Car title loans can also lead to a cycle of debt.  A vast majority of single-payment loan borrowers renew their car title loans multiple times, incurring fees each time.  Just 12% of single-payment borrowers repay without renewing the loan. One-third of the remaining borrowers renewed their loans seven or more times. For a $1,000 loan, that would mean at least $1,750 in fees alone.

Call Me To Discuss Some Different Options To Prevent You From Falling Into The Debt Trap