Car Title Loans

Car title loans can be a quick way to get some, but action is needed to ensure that your payments on time or you lose your only means of transport.

A title loan is a way to borrow money on your vehicle. Based on your stock value, a lender determines how much money you can borrow. Average title loans from $ 250 to $ 1500, but as high as $ 5000 or $ 10000. In the title loan transaction, you can maintain and operate the motor vehicle, the lender takes title to your vehicle as security for the repayment of the loan. Usually the lender gets a copy of your keys. If you do not make payments on your loan, the lender will sell your car, some pocket money he or she is. Therefore, prior to the title loan on your car, you need the following:

TIPS FOR CONSUMERS

The amount you owe
Florida law allows a title lender to charge "charge" to 22% per month to borrow money (see Florida Statutes, Chapter 538). The 22% monthly fee of more than a year adds up to 264% of the amount that you borrow must be repaid. By contrast, interest on your credit card account is usually only about 18% to 21% per year. The box shows the total amount you repay the loan of $ 1,000 for paid leave in any one year to 22% per month

Today you borrow


$ 1,000

Monthly advance

approx. $ 300

More than a year to pay

$ 3640

Although not explicitly allowed Florida law, 22% "fee" equal to interest calculated monthly, some title lenders so you can pay 22% of the amount you owe, including 22% fee, which you paid . Keep in mind that if you can not order payment of interest on your loan, you pay three and four original amount you borrowed to return to his title.

Read the small print
Read and understand the full title loan application / contract before you sign. You should be aware of the monthly fee charged, duration, amount and number of payments to be made and the total amount of money you must pay to return to his title. You should also be aware of procedures for the lender if you have any payments. If you can not your loan payments, the lender will your car - maybe only if you have missed a payment. After repossession, the lender can give you a short time to make your car back if you restart your loan payments. Florida law allows only the names of the lenders will have a monthly fee, ranging up to 22% on Monday However, despite the absence of an explicit mention of any title loan borrowers, or people who work in connection with them, can try to charge, such as the possession and storage of your vehicle is returned to you. These additional costs can run into hundreds of dollars.

Consider Alternatives
On its face, a title loan seems attractive, especially if you need money quickly, a problem or have received loans from banks, savings & loan or credit unions. However, in the name of the loan, you pay a substantial fee, and likely lost the vehicle, which may be your only source of transport. Instead, the title loan, you might consider:

* Budget for everything you need;
* Work on an alternative plan for payment by the seller or supplier without a point, or if a title loan to pay you, if possible, to prevent the title loan to pay for basic needs such as rent or food ;
* Contact a credit counseling services that are offered at reduced rates or free, depending on the town or district where you live;

* Loans from friends and family, and
* The financial relief from charitable organizations or other assistance agencies.