Car Title Loans

[sms]

What is your experience with title loans. Its really my last resort. Unfortunately I messed up my credit in college and again a few years ago. Paying for it now!! I know its not the greatest thing to do but I'll be okay once business starts picking back up! I have my own business and I'm a single mom with hardly any help from DS father (but thats another story!). I just need a little help so I won't get too far behind on bills! Once you get behind it just seem so hard to get caught up again! Any advice would be great!

 

[DisneyBamaFan]

I had to do this twice in my 20s. No big deal - just don't borrow more than you can afford. The interest rates are usually very high (one time I paid nearly 25% ). Back then you couldn't get credit cards unless you had a great credit score, so it was my only way of borrowing money.

 

[happygirl]

Please don't do this. The interest is like 300%. What happens if you can't pay it back for some reason and then you lose your car.

It would almost be better to do a pay day loan. Not that is much better but you won't lose so much if you can't pay it back

 

[jen0610]

My brothers best friends did this.....OMG it was the worst thing he could have done. Kicked himself in the butt for years for doing it.

If you don't need a large amount right now, just a smaller amout to cover a bill or two - go thru your house and look to see what you have of value that you could pawn for now. I know my brother did this one with his sax and they did a 6 month repayment deadline. Then they actually extened it another 3 months and he was able to pay off the bills he needed to and get his sax back. You may find some items, that you don't really need any more and can get a little bit of money for.

 

[DisneyBamaFan]

... The interest is like 300%. ...

 

[cheermom1]

Please don't do this. The interest is like 300%. What happens if you can't pay it back for some reason and then you lose your car.

It would almost be better to do a pay day loan. Not that is much better but you won't lose so much if you can't pay it back

I don't the exact amount but I do know they are very high..dh did this before we got back together so I didn't know about at the time he did but I can tell you he paid on it for a VERY long time and kicked himself for doing it...as a matter of fact my dad just asked us last night about doing it too and we both told him not to do it..see if there is someone with do it for you like borrow money from a family member or friend and let them hold your title, that way you won't have the high interest rate to deal with...

 

[Golf4food]

Can you live without the car? If not DO NOT DO A TITLE LOAN. They are designed to take advantage of desperate people and get the vehicle. Even if you are able to pay it off you will have spent a LOT more money on the interest than the danger is worth.

Unless you feel like possibly losing the vehicle and walking everywhere while carrying your DS on your shoulders, you should find a better way - and ANY way would be a better way.

 

[DisneyBamaFan]

Those of you saying that title loans are so bad - is that a recent thing? My two title loans were for $2k and $2.5k, respectively. I paid just under 25% interest on the first, and just under 18% on the second (credit was slightly better). I paid them both off in 12 monthly installments. They helped me straighten out my credit. They were both loans taken in the very early 90s.

I can't imagine why someone would pay more than that interest rate for a secured loan...

 

[Praying Colonel]

Those of you saying that title loans are so bad - is that a recent thing? My two title loans were for $2k and $2.5k, respectively. I paid just under 25% interest on the first, and just under 18% on the second (credit was slightly better). I paid them both off in 12 monthly installments. They helped me straighten out my credit. They were both loans taken in the very early 90s.

I can't imagine why someone would pay more than that interest rate for a secured loan...

What you're describing sounds like an amortized secured loan instead of a vehicle title loan, which is more like a cash advance and has repayment terms like a cash advance.

This CNN.com article describes what a vehicle title loan is--and why it's usually a very bad idea.

 

[DisneyBamaFan]

What you're describing sounds like an amortized secured loan instead of a vehicle title loan, which is more like a cash advance and has repayment terms like a cash advance.

This CNN.com article describes what a vehicle title loan is--and why it's usually a very bad idea.

Wow! No, my loans were nothing like that. Scary stuff...

Thanks for the link...

 

[sms]

Thanks everyone for your advice. Its great to be able to turn to you guys. I just dont' like friends and family in my business. Glad to turn to my dis buddies! I'm still weighing all my options, which isn't very many! I'll let you know what I decide!