“How can we pay off such a hefty amount? It’s really impossible”.
Those questions were thrown by my wife. Both of us had our sight fixed on an unexpected sum of expenses that was impossible to be accommodated within our limited budget. The figure was almost staring at us with a deadpan look and we really had no idea how to deal with it. To make things worse for us, we already had run out of our emergency fund.
$100,000 – that was the figure we paid on our credit card debt as a part of a debt management program, the terms of which led to closing of our existing unsecured credit lines and did not allow us to apply for a new one until the completion of the program. No solution was in sight and we badly needed it fast.
Title loan is often confused with payday loan. An owner brings a title to his car and receives a good volume of cash. However on downside, the cash attracts a heavy interest rate.
Car Title Loan
It was no different from getting an equity loan on my owned vehicle. In our case, the loan was approved in less than two hours and we walked with car title in our hand.
Followings are the salient features of car title loan:
- The applicant must own a vehicle (Lien holder on car title not allowed).
- Secured loan on a three-year term
- No penalty for early pay-off
Those who hope that such kind of car title loan is available at a payday loan house or pawn shop, hold your breath as you will be surprised to know that even banks and insurance companies provide the same.
We did not like the idea of borrowing when we were almost sagging under debt and struggling hard to eliminate dues on credit card. However, we had no way to take out another loan as we were dealing with an extreme financial condition.
Car title loan is a financial product that could be of great help for those who are in similar condition like ours. It is a legitimate product that accelerates clearance of dues. We paid off our new loan quickly as soon as our debt relief scheme ended.
Are you in similar financial trouble and own a vehicle? Your four-wheeler could be a good source of money when you are in urgent need of that.