What the Typical Uses of a Title Loan Are
For those not in the know, title loans are a type of fast, short term loan that uses the value of your car’s title to secure a loan. Their main features are speed and convenience; often you can get a title loan within as little as a half hour of walking into a title loan store, and in the state of Arizona you may be able to get as much as $15,000. If you’re reading this you no doubt already know what you’d use a title loan on, but it’s still useful to know how other people are using them and what they’re prioritizing. Here are just a few of the most popular uses for title loans.
Medical costs are by far the most common use of title loans. This is really unsurprising considering that healthcare costs are the leading cause of bankruptcy in America today. It’s also unsurprising considering just how horrifically expensive even a minor procedure or short stay in a hospital can cost. Because of these high costs, when a medical emergency hits the ability to access cash quickly is invaluable. A title loan can also give you the cash to pay for preventative care which can reduce your healthcare costs as a whole in the future. For example, yearly teeth cleanings are far cheaper than having a cavity filled.
Ironically for a loan that’s based around your car, if another car of yours is involved in an accident, you can use a title loan to get it out of the mechanic’s and back on the road. Why is it so important to have a functioning car? If you’ve never had one you know them well: keeping a job becomes difficult without access to reliable transportation, and even something as simple as groceries becomes an odyssey. A title loan allows you to avoid those difficulties and use your car while you pay back your loan.
After healthcare costs, being laid off or fired the next biggest emergency a title loan can remedy. Losing your income is so catastrophic because it cuts your legs out from under you and means that your financial health is now in a steady decline with a firm deadline: at some point your savings will give out and you’ll be left without any options. Another problem with losing your job is that getting another one suddenly becomes more difficult. Employers become suspicious the longer the gap between jobs, and maintaining a business appropriate appearance takes money all on its own. A title loan can help remedy that, and also help extend the deadline until your savings give out.
Who doesn’t have money for bills? Well, plenty of people. The amount of people in America who have difficulty paying their bills on time each month is truly astounding. Between thirty years of stagnating wages and steady financial crashes, it’s understandable that most of us are struggling to just get by. Luckily, a title loan can provide the short term relief you need to pay the bills and make it through another month.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.