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Thursday, 9 May 2013

A Tax Refund Can Be Of Help With A Car Title Loan

By Sarah Dinkins


Having taken a car title loan out already, you may be finding yourself in a position where you are endeavoring to pay it off. Perhaps you have had to increase the debt and are now feeling buried due to high interest and fees being tacked onto your principal balance. You wish to know what's required to get the loan paid off so the lender doesn't repossess your vehicle. Have you tried asking a member of the family or buddy to help you out? What about selling stuff on eBay or Craigslist? Garage sales can also bring in large amounts of money. What to do?

Have you thought about using your tax refund? Whether you have filed already and have a check coming your way, are in the midst of plugging in the numbers, or are just getting fired up for the job of filing... Your tax assessment may be your ticket to getting your auto title loan paid off and your automobile title loan lender off your back! You may have other plans for that money... A holiday, new big-screen TV, shopping spree... But do you not think getting that auto title loan paid off should be a priority?

A car title loan carries one of the very highest rates on any loan out there. Not to mention, if you have got to extend your loan period, you will be paying a great deal of cash in fees and interest. What started out to be $1000 could finish up double that amount. Car title loans are not meant to be long-term debt but when you "rollover" your payments, that's what your loan becomes. Not only are you able to clear up your loan obligation and be free and clear of those payments but you will get the "pink slip" back to your auto and be rid of the worry that the bank may repossess your automobile.

Unlike payday loans where the loan isn't secured so the lender can't go after anything of yours to get back their costs, lenders have the title to your automobile. With they are free to sell it at an automobile auction, get what they can and still go after you if there's a deficit between what you owe and what they got for it at the sale. In fact , you risk being sued should they have to take their collection process a step further. You can avoid that occuring by employing that surprising money from your taxation estimate.

Taking advantage of having the money to repay your loan is a possibility that won't come again for a while (if not a long time). You could have huge ideas for that check from the govt. but putting your "wants" in front of your "needs" will only cause you to put yourself in a financially perilous position; particularly if your checking account is not budgeted for auto title loan costs. These varieties of loans are meant to be short term and taken out for unforeseen or emergency costs. Even if you're thinking about taken out an auto title loan and are the tiniest bit worried about your ability to pay it back, find another way to get the cash you need. It is not worth putting your financials and your vehicle in jeopardy.




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