If you’ve ever been in a situation where you have an unexpected expense with no feasible way to make that money, then you know how much a fast short-term loan can help out. In these situations, a car title loan can help get you out of this financial emergency and back in the clear. In this article, we’ll explain precisely how car title loans can help you in a financial crisis, so keep reading now to get all the details.
Pay Emergency Bills
If you’re about to default on an important bill, such as your mortgage or utility bills, leaving you without the essentials, then a car title loan can be a huge help. Some lenders will give you cash quickly by handing your car title over as collateral. Car title loans are perfect for emergencies when money is needed fast, and other sources are not an option.
Even though car title loans often have high-interest rates, having the money at the moment can mean the difference between being able to pay your mortgage or rent and finding yourself without a place to call home.
Costs for Car Repairs
Some car repair costs can be prohibitive, and not everyone has a thousand dollars or more laying around to get their vehicle back in working condition. A car title loan may help. Instead of paying for your expensive car repairs in one lump sum, you could get them covered with a loan to be paid back over a short time.
Loss of Income
In this day and age, you never know when your last day on the job might be, especially with the current turbulent economy. If you find yourself without work and a means to support yourself, a car title loan could be the short-term fix you need until you find your next gig. Most car title loan lenders will work with you, so if you need a longer time to pay it back while securing a new job, you’ll be able to do that.
Consider with Caution
Car title loans are short-term loans. Because they carry a high-interest rate and can quickly accumulate penalties if not paid back on time, they should not be used for long-term situations. In addition, if the borrower defaults on the loan, they will lose their car, so approach cautiously.