Online Car Title Loans

There are so many horror stories out there about people that have had a bad experience with car title loans that it is hard to know where to start. Hopefully by reading about the experiences of others you will treat this credit product with the respect it deserves and try everything in your power to avoid having to make use of them.

With a little forward planning and cutting back on your expenditures you can save a cash each month to ensure that you have money put aside for the emergencies which can pop up at any time. If you can do this then you’ll find that you never have to make use of either auto title loans or any of the other similar products on the market such as payday advances or pawn shop loans.

Car Title Loan – A True Story

Stephen took out a loan with an online title loans company when he lost his job and needed cash fast to pay for the mortgage and other essential living expenses. He had another job set up which he started in a couple of weeks therefore he knew the money would be coming in soon to pay off his debt. He also had a good credit rating so could probably have gotten a loan from the bank but the money was needed at such short notice that he decided to opt for the car title loans option.

He took his car which was in excellent condition down to the loans office and was promptly told that he could borrow $1500 that very same day. Obviously he was delighted at the prospect of such fast cash but unfortunately he took the time to consider the possible consequences of using such a lending agency. He made arrangements to repay the entire loan plus $300 in interest charges in one months time when he had started his job.

Of course the worst thing that could have happened came to pass and Stephen took ill and couldn’t start his new job which put him in one hell of a predicament. He didn’t have the money to pay off the car title loans company when the month was up and there hadn’t been any insurance available at the time he took the loan out.

So he renegotiated to pay the loan back in monthly installments which was going to end up costing him over $200 a month for a year. The total cash now paid back on the $1500 loan would now be $2500, or $1000 in interest. But things only got worse as Stephen’s illness continued and he had top put off going back to work longer than expected which led to him missing one of his payments.

Two weeks after the payment had been due the repo man arrived at his house demanding $2500 to payment for the loan or he was taking possession of the vehicle. Obviously as this cash wasn’t available so the repo man barged into the house and grabbed the keys.

After repeated calls to the car title loan company trying to sort things out with no success the vehicle was sold at auction to pay for the debt and Stephen never saw a cent from the cash raised.