Car Title loans are secured by your car's title. The lender determines how much
you can borrow, based on your car's value. Typically car title loans range from
$250 to $1,000, but can go as high as $10,000. The duration of these loans is
most often 30 days. If you fail to make loan payments -- maybe just one -- the
lender can repossess the vehicle.
A short term car loan provides the cash needed to meet an immediate short-term cash
flow problem. It is not a solution for longer term financial problems for which
longer term financing may be more appropriate. You may want to discuss your
financial situation with a nonprofit financial counseling service in your
community. You will be charged additional fees if you renew the loan.
Like payday loans, car title loans are marketed as small emergency loans, but in
reality these loans trap borrowers in a cycle of debt. A typical car title loan
has a triple-digit annual interest rate, requires repayment within one month,
and is made for much less than the value of the car. Car title loans put at high
risk an asset that is essential to the well-being of working families -- their
vehicle. Hope this car title loan article has helped you decide whether a
car title loan is the direction you wish to go in.
For Your Free Auto Loans Guide, Visit
http://www.CarAndAutoLoans.com.
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