Avoid Title Loans

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I hear these commercials all the time for title
loans.
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I think to myself What is the point of the
loan?.
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I then did some research on title loans, and what
the procedures are for them.
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I then discovered that they can be beneficial for
a quick loan to cover an emergency expense they
are also a dangerous trap that people should
avoid at all costs.
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The truth of title loans is that you may end up
paying back a lot more than just the loan.
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I would like to discuss some concerns as to why
you should never get a title loan.
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The first reason why people should avoid getting
a title loan all together is the unbelievably
high interest rates that the company will charge
individuals.
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This rate can be as high as 300 percent annually.
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The interest is not just the only concern that
buyers should be aware of.
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The next concern is the actually loan fees that
are charged.
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This can lead people to being unable to pay off
their loan.
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The next reason why people should avoid getting a
loan of this nature is the balloon payments.
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Naturally payments may seem very reasonable for
the first couple of installments, but then the
payments required can skyrocket which can cripple
people financially.
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The third concern that individuals should have
concerning title loans is the extended pay option.
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Most title loans are designed to be short term
loans.
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That being said if an individual takes out too
high of a loan then paying the amount back plus
any fees and interest can force people to need
extra time to pay back the loan.
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However, the additional time to repay the loan
comes at a high price which includes additional
interest and fees.
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One of the scariest concerns that people must
watch out for when getting a loan like this is
the risk of having their vehicle repossessed.
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Companies that offer these kinds of loans are
hoping that you miss payments because then they
can take ownership of your vehicle at a huge
discount to what they would have had to pay to
purchase the same vehicle.
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In addition to having your vehicle repossessed
the title loan company will be quick to resell
the vehicle.
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The can do this quite efficiently by offering the
vehicle at a discount, but still a high enough
price to make a profit off the vehicle.
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In conclusion drivers who are considering getting
a title loan will be dissuaded from falling into
this financial trap.