Title loans have significant risks and expenses. Some of the options below may not be available to you, but you should at least try (or rule them out) before going for a title loan:
Cutting Costs vs Title Loans
If you’re short on cash, you might be able to avoid a title loan by reducing your cash outflows each month. Consider:
- Loan modification on your mortgage
- Living frugally to avoid title loans
Other Loans - Besides Title Loans
Before using a title loan, see if you can get another type of loan. Consider asking friends and family for a loan, or see if they will co-sign a loan with you. Remember that you’re putting their money and their credit at risk, so only use them if you’re confident that you can repay any loans.
You can also try to get unsecured loans that are not title loans. If you have income and decent credit, you might try a local credit union for an unsecured loan. Finally, you can try peer to peer lending sites. These services allow you to borrow from individuals as opposed to banks. The loans are unsecured and interest rates may be higher than bank loan rates, but you’ll probably do better than you would with a title loan.
Final Word on Title Loans
It cannot be overemphasized that title loans are expensive and you might end up losing something you need to earn income. Do plenty of homework before using a title loan, and make sure you read and understand the title loan documents before signing anything.
