Loans to Pay Off Debt
Paying off debt takes time — and money. Sudden and unexpected expenses can send you into debt, but title loans can help. A title loan allows you to borrow money against your car’s value. This short-term loan typically doesn’t include a credit check or long processing times, so you can pay back immediate expenses.
A title loan isn’t ideal for paying back your full school loan or low interest rate credit cards, but it’s not a long-term solution. Instead, think of the title loan as a way to keep you on your feet when you’re having a bad month or need to handle one type of payment.
If you owe money now, take a look at how a title loan can help and what types of debts it can help you to pay off.
Credit Card Expenses
The more credit card debt you have, the more you have to work to get a loan. Your credit score will suffer if you skip payments, owe more than your income allows you to pay off, or have more debt than open credit. If your credit score isn’t at least 690, you have either a fair, average, or poor rating — depending on how low yours goes.
If you can’t make your credit card payment, a title loan gives you anywhere from a few hundred to a few thousand dollars to use almost immediately.
While you add an extra payment next month (or at the end of the title loan’s term), you won’t lower your credit score by missing your current minimum payment amounts.
Maybe instead of missing one payment, you missed several. If your missed payments are on a credit card, you could add extra interest and penalties. But if your missed payments are on a utility, the supplier will likely turn off your service.
Instead of potentially losing your gas, electric, or water, a title loan gives you cash to pay the utility company immediately — before they terminate your service. If you’ve received a notice of termination and have no other means to pay, this option buys you time until next month.
In 2016 patients in the U.S. had more than $3.3 trillion in health expenditures, according to the Centers for Disease Control and Prevention. Co-pays, deductibles, and non-covered medical expenses can all add up. Like other types of debt, failure to pay these expenses can lower your credit rating.
While hospitals and health care facilities are often willing to work with patients and their families, they may require some form of immediate payment. Whether this is a full or partial payment, a sudden illness or accident could mean that you must write a check for money that you don’t have. A title loan provides you with fast cash to pay your bill right now.
Are you a two-car family? If one of your cars is in great shape, but the other needs immediate repairs, a title loan is an option to keep both your vehicles on the road.
If you don’t have the cash to pay the mechanic right now and your credit cards are maxed out, a title loan allows you to pass inspection, drive safely, or get collision repairs. Again, you’ll need funds in the immediate future to repay the title loan, too.
Do you need cash right now? Contact Tennessee Title Loan for more information.