Avoid These Pitfalls with Title Loans
We all run into financial troubles occasionally and need help by way of a loan. No matter how good you are at budgeting and saving money, emergencies arise. Many people turn to finance companies to get them out of severe monetary troubles. However, there are times when using title loans or any type of loan can lead to more financial difficulties.
Don’t Get Locked into a Too-Short Repayment Period
It doesn’t matter what type of loan you use: a personal loan from traditional banking institutions, credit unions, or savings and loans, loans from relatives, payday loans and title loans. If you set the repayment date too close, you might just dig yourself into a deeper financial hole.
Many who tell friends and relatives, “I’ll pay you back next week” later realize they will need their entire paycheck to pay bills and buy groceries so that they feel they have to avoid that person. That avoidance becomes a lot more difficult this time of year and causes genuine family hardships, especially if it’s the grandparents you told you’d pay back next week.
However, a too-short repayment period from financial institutions could cause further hardships. When you take a payday loan with a postdated check or Automated Clearing House (ACH), the money will automatically get debited from your account, and you might need to take out another loan immediately, which usually creates a cycle of debt that is difficult to get out of even when paying back more than you can afford each pay period.
That situation could get even graver if you sign over the title of the family vehicle on title loans with too-short repayment periods, you could lose your means of getting back and forth to work to get the money to repay the loan.
Always carefully consider the repayment period before you sign for any type of loan. However, if you have already signed a loan with a too-short repayment period and the loan is due in a day or two, call Advantage Finance immediately to avoid repossession and keep your vehicle to get to work.
Title Loans Are Too Easy to Get
Title loans are oftentimes too easy to get, which could be another pitfall many people do not consider. Title loans and payday loans should be a last resort because the interest rates are higher than traditional loans and there are no credit checks.
And, payday loan repayment periods are always too short. You have no choice but to repay the loan on your next payday with automatic withdrawal.
Title loans are much quicker than traditional loans, and there is frequently no time to reconsider. You make the application in the morning, and the money is ready that afternoon. In an emergency, that is terrific. But, when you just want money for something that could wait or someone’s gift, a card with a picture of your promised gift might be more appropriate until you can afford to buy it with cash.
When you find yourself in a grim financial situation, consider affordable title loans.
The Affordable Title Loans from Advantage Finance LLC
Avoid the pitfalls of any type of loan by carefully considering whether or not you need the money right now or can it wait. When you need to refinance payday loans or a 30-day title loan from another company, call Advantage Finance, LLC, (281) 410-5337. Use our handy contact form to apply.
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