Here's How a Car Title Loan Can Help Lower Your Overall Debt – Fast Action Finance
While the global economy has been steady for years, some now say we have already begun a worldwide decline. But, regardless of what’s happening in the world, regardless of whether the rest of the world is doing well, there are always those of us who are just trying to get by.
When times get tough financially, the burden can feel absolutely crushing, especially when you feel there is no way out of the situation you find yourself in.
But, there are options for you in the Ontario region: a car title loan may be able to get you back on track.
Paying off your debt can seem an insurmountable task when you have little to no equity or assets.
But you may have equity in places you never considered previously. Your car is worth money, and you don’t have to surrender the vehicle completely to get money for it. This is where car title loans come into play, allowing you to keep possession of your car while giving you a vital loan to help pay down your debt.
What is a car title loan anyhow, and how do they work? Find out here all about car title loans and how they can assist you in paying down your debt.
Car Title Loans: What Are They?
A car title loan is not to be confused with a car loan: they are two very different things.
A car loan is where you purchase a vehicle by putting a down payment down, and then paying the rest of the balance off in agreed-upon installments. The loan company holds onto your title to the vehicle until you pay off the loan, thus protecting them. The loan company makes money this way by charging you an interest rate commensurate with your credit score and down payment, among other factors.
How A Car Title Loan Works
Now, a car title loan is what we’re talking about here. Basically, a car title loan is the polar opposite of a car loan. In a car title loan, you already have a vehicle you own free and clear, or sometimes owe a small amount left on your payment plan. You then offer up the title to your car to a business in exchange for a loan.
The loan we are talking about is based largely on the value of your vehicle. The car title loan service will value your vehicle from some information and photos you provide.
The valuation of the vehicle will depend on its condition, age, and mileage, among other factors. While some lenders will require a credit check, some services are outstanding at approving people with low or no credit.
Is It Risky Or Dangerous?
Now, you may see other pieces of literature out there that will caution against the usage of any such service, for fear that the interest rates would be too high or for fear of the car being repossessed. And the truth of the matter is, they are both right and wrong.
They are correct in their assertions about what a poorly run car title loan service will do to you. A few bad apples in the business charge interest rates out of line with what is appropriate and the standard, leading to wildly high payment plans that are unfeasible for you and will sometimes end up with you having your vehicle repossessed.
But with that said, much like anyone you do business with, it’s all a matter of doing your due diligence beforehand. Car title loans are perfectly safe so long as you’re doing business with an upstanding service.
While there is interest that will definitely be paid as a result of obtaining a car title loan, the rates are not always the nightmare others make them out to be. There is nothing inherently wrong with charging interest; this is simply the cost of getting your loan, nothing more.
Do you cry foul at a fast food restaurant for selling you a burger for $5 when it only costs them $2 to make? Of course not. Interest on a title loan is the same exact thing.
Finally, when it comes to the safety of your car, there is nothing to fear. The payment plans available in Canada can be very flexible and generous, and so long as you make your payments, you never need to fear your vehicle being taken from you.
At the end of the day, all of this boils down to simply making sure you can trust the car title loan service you wind up with. Make sure you take a good look at the testimonials and reviews of any car title service and that will give you a pretty good indicator as to whether a particular service is right for you.
Get Yourself Out of Debt Quickly
While it is true that taking on any loan carries a certain risk, a car title loan is one of the relatively more simple ones.
The amount of money you borrow is largely tied to the value of your car, the payment plans can be simple and easy to make, and if you have your car paid off anyways, it’s literally just a pile of cash in vehicle form, sitting in your driveway.
A car title debt has no tangible effects on the borrower. You get to keep your vehicle, continue to drive and use it as you see fit. One way to think of it is kind of like a short term refinancing of your vehicle in a sense. You get some cash for giving someone else lawful, but not physical, possession of your vehicle until you pay off the loan.
For those who have pressing debts that need to be dealt with immediately, it is the fastest and simplest method of getting some extra money. Sometimes you can complete the entire process online and receive your money in as little as a half hour!
Need A Loan In Ontario? We Can Help
So now you see how a car title loan can assist you in paying down your debt in a hurry.
If you need a car title loan in the greater Ontario area, give us a try!
We offer loans for low and no credit individuals AND even offer loans for storing your motorcycle or boat with us!