Using Title Loans to Pay Off Imminent Credit Card Debt
Statistics show that American adults who own a credit card have an average debt of $5,047. Individuals can turn to title loans for the cash needed to pay off this debt immediately. Paying a steady amount of $500 a month, with an interest rate of 14%, would take 11 months to become debt free.
For most Americans, this is not a practical solution. Paying off credit card bills can be a huge burden, especially with the threat of penalties and a bad credit score that accompany late payments. That’s why, getting money fast and paying off credit card bills before they accrue penalties is important.
For those who need cash fast, there is the option of getting a car title loan. A title loan is a kind of secured loan that lets a borrower use their car as collateral.
Car owners are not required to leave their car at the lending facility. Instead, borrowers are able to get a particular amount of money in exchange for their vehicle’s title. Once the loan is paid off, they can retrieve their car’s title.
This type of loan doesn’t require the lender to have a good credit score or have a high-paying job. It’s a convenient way to get cash for emergencies, like paying off credit card and other bills when in danger of being cut off.
A title loan is more convenient than most bank loans. Only about 13% of Americans would turn to financial institutions for help with credit card debt. With a car title loan, they can take care of their debt without the need to apply for a complicated bank loan or asking for money from friends and relatives.