The Horrors Of Car Title Loans

December 8, 2009

A car title loan is essentially a loan that is given to the car owner. This is usally given to people with bad credit or no credit at all, the collateral for such loans is the car itself. The process is very simple your car will be used as collateral in the event that you can not pay back the loan. If you fail to pay back the loan on time you will be faced with these two awful situations. The first is interest continue to add up and so if you eventually do have money to get your car back you will have to pay as much as 4 times what you originally borrowed. The second situation might be that you will lsoe your car altogether. Don’t not think that the state goverment is going to assist you. Many states in the United States don’t even have any kind of legislation governing these kinds of loan transactions.

What eventually happens is that people lose their cars that are worth a few thousand for loans that were originally as low as $300. This is indeed a nightmare and one of the reasons that you should be extra careful or you will lose your vehicle. If you are not 100% certain that you can return the back the money you borrowed then you should under no circumstances take out a car title loan. These lenders salivate when people come to the shops offering their cars and trucks as collateral. The lenders take the car titles and sell the cars for a number far more than the amount of the loan.

It is a business and there are many horror stories of people losing their cars for minute loans. It has happened , it is happening and furthermore it is completely legal. You might wonder what are your options to get back your car. If you have the money you owe then simply pay it and get back your car. But if you do not have the money and your State does not have any laws then you can either hire an attorney who will only cost you more money. The moral of the story is simple, don’t be a fool and put up your car for a silly loan that didn’t amount to much in the first place. You should extend every option and all other resources before taking out a car title loan. The truth is rarely does any good come out from a car title loan, so be careful or your car will be repossessed.

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