Finding a way out of car title loan debt can be perplexing for many. Car & auto title loans are given out to consumers without intensive applications. They are easily attainable for most who apply because the lender uses the consumer’s car or truck as collateral. There are typically no credit checks which means those looking to borrow who have bad, low or no credit at all have the same chance of getting a loan with a car title lender as with any other type of loan. The problem for some people who opt to take out these short-term loans is that they are expected to paid back quickly. That may be easier said than done for some borrowers. Car title loans range from $500-$5000 depending on how much a person’s car is worth. Lender’s usually give anywhere from 1-3 months for the loan to be paid off. This can create a problem with debt for some people when they aren’t able to pay it off in time
Consolidation- Take out a consolidation loan that will allow you to pay off your car title loan & have the option to combine your balance with other debt you may have. You will avoid high interest rates & fees charged by car title loan lenders & possibly reduce your monthly payment in an attempt to get your debt paid off. Consolidation loans don’t work for everyone, though, being that you still have to be approved once you apply. If your credit score doesn’t permit, this may not be an option for you. You may also be charged a monthly fee on a consolidation loan and because it is unsecured, the intertest rate may be really high.*Credit Counseling- In this type of situation the credit counseling company will look at your budget & income & help you restructure your payments in order to pay down your debt faster. It’s not a guarantee that your car title loan lender will cooperate & work with the counselor, though. Taking care of your debt this way can benefit you in the long run by having a goal to pay off your bills but won’t help your credit. Creditors will still report that you are making payments late. Article Source: http://EzineArticles.com/7532283
