Title Loan

Shrouded in Title Loan Debt? Here’s What You Can Do

Being buried under a mountain of debt is a scary feeling. Unfortunately, the overwhelming majority of people in the United States today are living paycheck to paycheck, In fact, almost 80% of Americans would have a difficult time paying a $500 emergency.

Think about that for a second.

Because of all of this financial strife, a lot of people are taking on subprime loan debt to get them out from underneath this dark cloud, not realizing that a lot of times they are mortgaging their financial future just for a little bit of short-term relief.


Take car title loans as a quick example.

A lot of people see these kinds of loan packages as a godsend, something that they can use as a bit of a financial life raft when they are drowning piles and piles of debt already.

How Title Loans Work

A car title loan is a subprime one that uses a vehicle’s title as collateral. These are usually advertised to borrowers with fair to poor credit. According to TitleLoansFAQ.org, title lenders will usually lend half the vehicle’s value, which is determined by the vehicle’s age, mileage, make, model, and a few other factors. Before a borrower can secure a title loan, they must bring their vehicles in for an inspection at which point the lender will take note of the aforementioned factors.

Once a loan contract has been written and signed, borrowers will typically have 30 days to repay it in full. If the borrower does not pay in full, the borrower will have to renew it for a fee. This is commonly known as a rollover. If the borrower fails to either pay the title loan off or rollover it, the lender has the right to repossess the vehicle.


In some cases, the borrower does have some protections afforded to them by their state’s small-loan statues. For example: If a borrower’s vehicle is repossessed, some states protect the borrower from having to continue paying the full amount. In a situation like this, the lender must deduct the proceeds from selling the borrower’s vehicle from the outstanding loan amount. Unfortunately, not all states have the proper laws in place to protect borrowers from predatory lenders.

The Allure of Title Loans


Nontraditional lenders offering car title loans are quick to advertise them as an opportunity to get quick cash with nothing more than your vehicle title as collateral – probably advertising that they don’t care about your credit score, your credit history, or any of your other financial details.

People flock to these kinds of services because of the promise of real relief, never realizing that they are simply playing a crooked shell game, and that their financial situation is going to get worse (sometimes much worse) sooner rather than later.

Over a few weeks, a financial snowball starts to build as detailed here in the Motley Fool. Loan fees add up, annual percentage rates on these kinds of loans regularly top 260%, and before you know it you are taking other loans out to take care of these financial obligations – and the cycle rinses and repeats until you find yourself in even more debt than when you started.

Thankfully though, you don’t have to relegate yourself to this kind of financial nightmare any longer.

No, there are a lot of ways you can manage and mitigate your situation to get out from underneath the vicious cycle of subprime loan debt just by taking advantage of the tips and tricks we highlight below.

Solutions for Car Title Loan Nightmares

The best solution for dealing with a car title loan nightmare is to simply find a way to pay it off as quickly as possible, making sacrifices in other areas to help you get out from underneath this debt ASAP.

Here’s five helpful tips to get out of debt on a low income:

Sadly, though, the overwhelming majority of people dealing with car title loan nightmares are in this situation precisely because they had no other options, no other alternatives, and no other financing or money available.

One option, and it is not for everyone, is to sell the car that has the title loan on it. This will give you a lump sum of cash to get out of it. You could also downgrade your car, so you are not totally without wheels.

Obviously, neither of these options are all that attractive. Refinancing or consolidating your debt with a more traditional lender may be a road you want to go down, too. Your financial situation may have turned around a little bit since you had to take out a car title loan and you may now have good enough credit to get a traditional personal or consolidation one from a bank, credit union, or credit card company.

Finally, it might just be a good idea to contact the car title loan people directly and see if there’s a way to negotiate friendlier repayment terms.


You might be a little surprised to hear this, but the overwhelming majority of car title loan lenders have absolutely zero interest whatsoever in getting into the car selling business. They don’t want to take possession of your vehicle, nor do they don’t want to repo your vehicle, and they don’t want to deal with the headache, hassle, and the expense of finding a way to sell your car after they’ve taken it because of it being a car title loan default.

Almost every company out there would rather talk to you directly to work out payment terms that make sense for both parties, and help you get out of this financial situation rather than strap you even more than you are right now – in which case they have to now spend a lot of money to sell your car (for who knows how much money), never recouping anywhere near what they would have gotten if they were flexible in working with you.

Why Millions of Americans use Payday Loans

The Justice Department regularly target banks that offer payday loans. This is in quite simple terms as they consider payday loans as something that offers a questionable financial venture, as a means of service.

But we are not quite sure why, and frankly, we are not sure if it’s the right way to go about treating payday lenders. As the title of this article suggests, millions of Americans regularly use payday loans.

They are forced to use payday loans because a large portion of the country’s population is considered as middle-income Americans that live paycheck to paycheck. When you live a life like that, you are very often exposed to a lot of factors that might contribute into you needing money before your paycheck arrives. Think about emergency situations like needing to pay a medical bill or your car broke down and needs repairs. Because of their financial situations, they can’t afford to pay for these emergencies, and they rely on payday loans.


A payday loan is a very simple method of lending money, usually between $100 and $500 for a short period of time usually as soon as the next paycheck arrives. The trick, however, is that you need to pay a loan fee which is usually $15 for every $100. That fee is high, and we understand why someone would feel threatened by that.

To get a payday loan, however, you need to have a job, a checking account, and proper identification. Tick all those boxes, and you can lend anything from $100 to $500.

Another way of lending money is to do it online from payday online companies like Lån Online.

Companies like this will make it easy for you to get money faster. Online payday loaners offer in-store Payday loans, Title Loans, Installment loans, Line of Credits, and more.

Types of cash loans online payday lenders offer.


Pay Day Loans: Usually referred to as a cash advance, payday loans is a short-term solution to your money problem by offering financial aid, with repayment options as soon as you pick up your next paycheck.

Installment Loans: Does the same as a payday loan, only installment loans can offer a larger loan amount and a longer repayment time.

Title Loan: A title loan will let you drive your car at the end of the day instead of seeing it repossessed. Usually, companies like this do not involve a bank account.

Line of Credit: Very different than the previous types of loans mentioned, a personal line of credit is an open line that you can draw money out as long as there are still available funds.


Payday loans are an excellent option to have when faced with an emergency. Imagine not paying that doctors bill, imagine not paying the ticket for your car, imagine not fixing the broken part of your car, imagine running away from the problems because you lack a few hundred dollars. The results?- If you don’t visit your doctor because you lack money- you could face really big problems.

If you don’t pay your car ticket- you get your car repossessed. If you don’t have your car, you might lose your job, and if you lose your job, you won’t have money. And if you don’t have money, you will never get your car back.

This about this and imagine how much you are saving by spending $15 for every $100 you need to lend. I would say that you are saving quite a lot.

The Advantages Of A Title Loan

There are a lot of different lending solutions out there and this can make it hard to decide what to do when you need to take out a loan.  Some of the loan options are highly-debated instruments and this will include title loans.

Most loans receive mixed reactions in the media and from consumers.  The media will often show loans in a negative light. However, title loan customers often state that these loans have saved them from financial ruin. These mixed messages make it harder to determine what you should do and what you should believe about loans. If you are considering a title loan, you should consider both the advantages as well as the disadvantages.

It Is Easy To Qualify For This Type Of Loan


The title loan application process does not require any credit checks according to TNL Car Title Loans. The only requirement you have to meet for these loans is that you should have a free and clear vehicle title. You also need to have a regular monthly income and state-issued identification.

You Can Apply For The Title Loan Online


There are hundreds of different lenders who offer this type of loan online which is ideal for a lot of people. In many cases, you will never have to enter a physical location to complete the loan process. Your loan will be handled on your computer and phone without any issues.

Same Day Approval

When you apply for a title loan, you could be approved for the loan on the same day as the application. There are times when you cannot wait for a week or more to get the approval of your loan from a traditional lender. If you are in this situation, this type of loan will be the best solution because of the speed.

The Cash From The Loan Will Be Deposited Into Your Bank Account


When you need a loan quickly, getting a direct deposit can be very helpful according to . This is what you get with a title loan so you never have to worry about the money getting to your bank.

You Can Borrow As Much Or As Little As You Need

The amount that you are able to borrow with this loan is determined by the value of your vehicle. If your vehicle is valued at $9000, this will be the maximum amount you are able to borrow. However, you do not have to borrow the full amount if you do not need to.

You Are Using Your Car As Security For The Loan


While there are many advantages to title loans, there are also disadvantages that you need to know about. The first is the fact that your vehicle is being used as collateral for the loan. This means that if you miss any of the loan repayments, the lender can legally take the vehicle.

Higher Interest Rates Than A Traditional Loan

It is important to note that a title loan will be a short-term loan solution. This means that you are going to be facing higher interest rates when compared to traditional loans. You will often be able to reduce the interest by repaying the loan earlier.

A Lien Is Placed On The Vehicle Title

When you take out this type of loan, the lender will place a lien on the title. This is done with the state motor vehicle administration and will only be removed when the loan is fully repaid. The lien will stop you from taking another loan for the vehicle until you repay the old loan.

A Title Loan Is Only Legal In 30 States


If you want to get a title loan, you will need to live in one of the states that allow them. There are 30 states that do this. You can apply online for the loan if you do not live in one of these states.

Additional Fees And Interest For Late Payments

Each late installment will increase the balance of your loan. This is due to the additional fees and interest that are charged.