An auto title loan, or title loan, is a secured short-term loan that requires the borrower to put up a vehicle he owns as collateral. The borrower allows the lender to put a security interest on the vehicle’s title, which will be lifted as soon as the borrower completes payment of his loan. If the borrower fails, the lender can sell the former’s car to pay for the amount he owes.
It’s easy to get excited over something you’ve always wanted to buy, like that brand-new car, a one-of-a-kind designer evening dress, or the LED TV you “badly” need. When you don’t have the money, it’s even easier to get tempted to take out a personal loan just to acquire those coveted items.
Just like treatment expenses for a health condition that’s not covered by insurance, people can turn to loan agencies that offer topnotch title loans in Salt Lake City for financial emergencies,. However, with a loan comes the weight and responsibility to pay off the loan in full and on time. That in mind, personal finance writer Ben Feldman offers a few tips:
In the event of an emergency, applying for car title loans is a good option to cover expenses, as Investopedia writer Reyna Gobel explains:
“How Car Title Loans Work
If you were to take jewelry or other valuables to a pawn shop, an employee behind the counter would appraise your items and give you a loan based on what your items are believed to be worth worth. In this case, the pawn shop will lend you money and charge interest. If you don’t pay back the money within the agreed-upon time frame, you will forfeit your items. This is similar to how a car title loan works.”
There are certain situations where a household can be challenged by financial woes. The recession of more than five years ago has put a lot of families who had led comfortable lifestyles in a myriad of financial problems.
Certain occasions call for the need to take out loans. Title loans in Utah are some of the most popular options for cash-strapped individuals. In response to certain misconceptions about the practice, Vanderbilt University published an article that sheds light on the benefits of this loan product.
Following the 2008 economic crisis, many Americans became prudent with their spending habits. However, that cautious spending mentality may be coming to an end this 2014. According to a report from Wicked Local-North Andover, many US citizens are once again starting to be more open to securing personal loans:
You may follow a strict budget to make ends meet perfectly from paycheck to paycheck. Unfortunately, the delicate balance of such a budget can be ruined by an unforeseen expense or emergency.
When thrust into such a situation, many people try to secure a loan. However, getting a loan from a bank can be difficult and time-consuming due to all the documents a bank may require. The worst part is that a bank loan application is not guaranteed to be approved.