Tag Archives: auto title loans

What Not to Do with Regards to Auto Title Loans

Critics of auto title loans argue that this kind of loan is predatory.  It attacks on the weakness of borrowers, which is lack of money at the moment, and there are emergencies to pay and overdue bills to take care of.  The promise of convenience made some borrowers blinded with the negative side of this type of loan such as the repayment period is quite too short (at 30 days on the average), making it sometimes impossible for borrowers to pay it on time.  In fact, studies have shown that on the average, the loan is rolled over many times before it is repaid in full or the car is repossessed. Given these situations, it is important that borrowers should be aware of what not to do when taking out this kind of loan.

Do not borrow this kind of loan if the car is very important

Just think of the inconvenience you cause your family and of course the hassle that it will impact with regards to your professional life.  Do not compromise your personal and professional life just because you need extra money to solve short term problems.  How do you think your children will react if you can no longer fetch and drive them to school?  How do you think can you juggle your time riding a public transport system and meeting quite a number of clients during the day? Scary, isn’t it?

Avoid seeing a financial counselor

When you have already taken out a loan and see that you indeed cannot repay the loan on time, it is wise to see a financial adviser and help you deal with this problem.  He or she can negotiate loan moratorium and at the same time give you pointers on how to avoid this expensive loan in the future.

Not taking it seriously

Financial counselors are in the same wavelength telling everyone that borrowers are easily lured and trap with the idea of getting that extra cash from this kind of loan and did not fully analyze if they really needed it then.  Very often, their lack of understanding towards different methods on how to deal with overdue accounts and dated loans is one of the reasons why they succumb to instant loans instantly.  Again, financial counselors can help you negotiate with your creditors as they will remind your lenders of your rights as borrowers when you tend to struggle with your payments.

Not dealing with it face to face

When you are convinced that it will take time for you to repay the loan, be man enough to admit it and inform your creditors.  You will never know their reactions if you will not tell them so.  By telling them, you might be in for a surprise and they might offer you suspension of interests or give you more time to settle it without repossession.

Clearly, auto title loans are obligations that you have to deal with personally.  It is not something that you can ignore and let time run its course and wait for solutions to pop instantly and the loans will vanish.

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