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Should I Take a Car Title Loan?
by Terry Bolton
What is a Car title loan?
When you lease a car, you will not get the title until you pay off the vehicle. If you haven't paid it off, should you consider to take an auto title loan? This is very similar to the payday loan type. They are marketed as small, short term emergency loans.
Why should you avoid them?
Because
* these loans are very expensive and might very well lead borrowers into an evil cycle of debt.
* it has a triple-digit annual interest rate
* it requires repayment within one month
* it is made for much less than the value of the car
* it puts an asset that is essential to the well-being of ordinary families at a very high risk -- their vehicle.
We have seen many generous campaign contributions from car title lenders. Unfortunately, industry-friendly laws have passed in some states at a breath-taking speed.
In other states, these lenders have tried to hide the true nature of their products in order to exploit loopholes in current laws.
My advice is clear, however: Stay away from these companies and their financial products, and look for some alternatives for a car title loan.
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