Most American adults today live with the fact that loans and paying off debts are a natural part of being a responsible adult, and knowing where to get a good loan deal, and what to borrow money for, can help a person finance many things in their lives, anything from wedding items like the venue or suits all the way to financing a home or a car, and college students often take out loans to pay for their tuition. Borrowing money to pay for cars is an especially common cause for debt among American adults, but this process does not have to be intimidating or shameful; financing cars this way is common, and many dealerships are ready and willing to help their customers get the right financing for new and used cars. People looking for a personal loan can look into other means of borrowing money as well, such as auto title loans. What does it mean to get a title loan fast for a car owner today? Can you really get loan money the same day you apply? Getting this type of personal loan means knowing how and why people get this sort of personal loan, and that will also mean knowing the general trends of American debt.
Most American adults today have various debts that they are paying off to finance all sorts of life expenses, from homes to student debt and especially cars and trucks. Personal loans are practically the norm for buying a car, and statistics show just how common this is. It has been found that 44% of American adults, nearly half of them, are using auto loans to pay for their vehicles, and this total debt comes out to a massive $568.6 billion, and in fact, this represents 9.03% of all American debt today. A record-setting 107 million Americans are currently paying off car loans, and car loans are in fact the leading reason for getting a personal loan, at 31%, with paying bills the second-place reason at 26%, and emergency funding is third place at 21%. A personal loan can vary widely in amount, anything from a mere $50 all the way to a massive $200,000, but it has been found that the average loan is in fact closer to $7,576. With all these people taking out loans for their cars and other reasons, what are some of the other ways a person can get a loan, aside from a mortgage or a car dealership financing deal?
Get the Car Title Loan
Those interested can look up local sites for applying for a car title loan, and an Internet search or consulting local loan businesses or financial experts can point the way to local sites. A person who takes out this sort of loan is advised to know what they are getting into, however, since there are some strict conditions to a car title loan, and many people who get such loans end up in a cycle of debt.
An interested party may drive to a car title loan place with their car title in hand, then go inside and apply for the loan. The requirements are fairly lax, with a borrow usually not needing to provide their credit score or proof of income. Instead, if the loan application is approved, the borrower will hand over their car title as collateral and they may leave with the money in half an hour or less. The loan amount will be based on a percentage of the car’s value.
Such a loan will be paid back either within 30 days, or in installment payments, and a borrower can expect a very high APR either way, with the APR easily going over 200% or even higher, and if the loans are not paid back in time, the car may get repossessed. Those who borrow money this way often end up taking more than one loan, and some in fact take out seven or more such loans, and a cycle of debt may be created, especially since fees are charged every time a loan is taken out. Those looking for a car title loan must be aware that while such loans are easy and fast to apply for, the borrower must know what they are getting themselves into.