Top 5 Reasons People Get Title Loans
August 21, 2020 | Daniel Dewitt
Title loans are one of the most powerful financial tools available to the American public. If you’re not familiar with them, title loans are a form of fast, short term lending that uses the value of your car as collateral for the loan. They’re useful both because of their speed, but also their low requirements and in the state of Arizona may be able to net you up to $15,000 depending on the value of your car.
Today we’re here to outline the top 5 reasons people take out title loans so you have an idea of whether they’re the right option for your financial situation.
By far one of the most common uses for title loans are medical costs and emergencies. There’s two basic statistics that show why: first, the majority of bankruptcies in America stem from medical costs, and second, most Americans only have around $400 on hand to deal with most emergencies before having to dip into debt. Because of these two facts, title loans can be both a metaphorical, and literal life saver.
While emergency rooms can’t turn away patients and will generally bill you after your stay is done, any medical treatment short of that will often require upfront payment. Dentists, urgent care, general practitioners: unfortunately money is the name of the game for them. This is why title loans can be so crucial to your health and pave a way for you to keep from ending up in the emergency room
The above dynamic is key to reducing healthcare costs as a whole. As the saying goes, a penny of prevention is worth a pound of cure. It may not alliterate, but it’s certainly true and an important dynamic to understand if you want to keep yourself and your bank account in good health.
Another key area in which title loans can make all the difference is with education. Not only formal education like schooling that you might commonly think of, but also less formal learning like job training, online courses, and professional seminars.
Education has the opportunity to drastically increase your long term earning potential. Statistics show that those with college educations earn more than their counterparts throughout their life, and even something as simple as professional training can matter hugely in changing your job directory and leading it upwards. Title loans are thus a method to invest in yourself.
Speaking of investing, another use many have for title loans is investing directly in stocks or real estate. While many of us don’t have much experience with investing in that way, it can be highly lucrative and break you out of a financial lull.
The one main tip you want to be aware of when using a title loan to invest is that you want to make sure that the upward interest rate of your investment is higher than the interest rate on your loan, otherwise you’ll only be losing money in the long term. Because of this dynamic, you should only invest in stocks or opportunities that you’re confident in the safety of.
Losing your job is never easy. It means a sudden stop to all income and leaves you adrift at sea without any wind in your sails. Luckily, title loans can serve as that wind. During a period without income a title loan can help you bridge the gap until you’re able to secure a new job. Title loans can help pay for bills, food, transportation, and even clothes. To get a job you need to look professional, and a title loan can help you maintain that standard.
Taking out a title loan can also serve as a form of motivation if you find yourself becoming sluggish during the job search: the need to pay back the loan means you have a limited time in which to find a gainful employment.
You Can Get Title Loans Online
Shifting from the causes of why people get title loans, one of the aspects that makes title loans in Arizona so convenient is that they can be obtained online. The process for a online title loan in Arizona is simple and fast and requires only a few requirements, far less than the small mountain of paperwork that a normal personal loan takes. If you’re in the state of Arizona and need cash, an online title loan is by far your best option.