People facing financial hardships will sometimes consider the option of a car title loan—a short-term line of credit that uses the borrower’s car as collateral, in case he or she is unable to pay the money back. If you have been thinking about a car title loan as a potential solution for your financial woes, you may want to reconsider. In fact, the Attorney General’s office strongly discourages consumers from taking out car title loans, as they can be very expensive, and can result in car owners losing their vehicles.
In a nutshell, these secured loans use the borrower’s vehicle as collateral, and are usually in small amounts—often between $200 and $400. The lender retains a copy of the car’s keys and might repossess the car even if the borrower is late with just one payment.
What makes these loans such a bad idea is the extremely high interest rates that are tied with them; some rates as high as 360 percent have been reported. Although the Attorney General is seeking to restrict the interest rates on car title loans to 21 to 36 percent, there is currently no restriction on how high these interest rates can be.
Not only are interest rates very high, but these payments are due quickly. Because consumers seeking these types of loans are facing financial hardships to begin with, it can often be difficult for them to meet these strict payment demands. Car title loans will only put you more in debt, and you also risk losing your car in as little as 30 days for missing a payment.
If you’re the recipient of an annuity payment stream, contact Peachtree Financial Solutions today. Instead of taking out risky loans, such as car title loans, you can receive the money that rightfully belongs to you in the form of a lump sum. The way it works is this: you choose to sell either some of your annuity payment stream or the entire payment stream. We will purchase the payments from you and offer you your money now. It’s as simple as that, and there is never anything to pay back, nor is there any risk involved. Contact Peachtree Financial Solutions today for more information and for your free quote!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.