Getting laid off from your job is no longer something that happens to another person. Some of the biggest businesses are collapsing, taking hundreds of thousands of workers down with them. In times of job uncertainty, anyone can become a victim of cost cutting and downsizing.
Being laid off can affect your income and lifestyle and impact your ability to make essential monthly bills such as mortgage payments and other expenses. In times of financial difficulty, you need to find a way to pay your bills so you can keep your home and your lifestyle. For those with poor credit ratings, it can be even harder to find lenders willing to give you a loan to tide over this crisis.
If you have one or more cars with a clear title, however, you can use it as collateral and get approved for a cash car title loan regardless of your credit score. A subprime loan can sometimes provide a cushion to get you out of a financial crunch and maintain your lifestyle till you find a new job.
If you don’t have savings and can’t other sources of funding to manage your monthly expenses and payments, managing your expenses for even one month without work can devastate your personal finances. You could fall back on important mortgage payments, leading to foreclosure and causing your credit score to plummet further.
Falling behind on repaying household debts when you don’t have a regular income can be stressful, especially if a sudden emergency, such as a medical crisis, arises at this time. At such times, cash car title loans may be your best option to stay current with your financial responsibilities.
Although cash car title loans are generally short-term debt instruments that must be repaid within 30 days, some lenders offer flexible payment terms from 30 days to 48 months, to create an affordable repayment schedule. Because subprime loans come with higher interest charges, however, they will cost you more than conventional bank loans.
To avoid paying much more in interest charges over the term of the loan or having to make a balloon payment, equal to the principal, at the end of the term, you should read the terms of the agreement carefully, especially the legal disclosures section. Failing to understand the yearly interest rate you will be paying (expressed as the APR) could land you in a debt trap with exorbitant interest rates, rollovers and rigid terms.
Make sure you have a plan to repay the loan before you take it. Ask your lender what happens after the term is over, how much you will be expected to pay and when. Know your rights as a consumer and see that the agreement does not prevent you from taking legal action in case your rights are violated.
If you default on your cash car title loans, it can further lower your credit score and devastate your finances. However, if you repay the loan on schedule, it could even help you reestablish credit and empower you to borrow a low-interest bank loan to tide over your financial crisis.