"A car title loan is an easy way to get cash fast!" And an easy way to lose the car you have worked so hard to pay for.
Car title lenders make money in two main ways:
When you get a car title loan, you are trading the title to your car for a handful of cash. And if you don't make the payments, the lender will repossess your vehicle, sell it, and usually come after you for the deficiency, which is the difference between what you owed on the loan, and what they sold the car for.
People see a car title loan as a quick fix to their financial problems, but often later find it was only a short term gain for long term pain. Robbing from Peter to Paul is not a wise financial strategy to get out of debt, and encumbering your vehicle with a new loan, in order to pay off unsecured debts such as credit cards, medical bills, etc, is a bad idea.
Unsecured debts, such as credit cards, lawsuits, collections, medical bills, etc, are discharged in bankruptcy, whereas secured debt, such as a car title loan, is not (unless you surrender the vehicle, or redeem it for fair market value if the amount you owe is more than the value of the car).
Before you consider applying for "fast and easy cash" in exchange for the title to your car, contact Doan Law Group to see if there is a better solution. There usually is!