Are Online Auto Title Loans the Worst of Both Worlds?

Everyone in Florida, no matter how broke, needs a car.  Not only is there very little public transportation, but walking outside, even for short distances, is several orders of magnitude more dangerous in Florida than it is in most other places.  If you walk a mile in the summer in most places in the United States, you might get a sunburn.  In Florida, if you walk the same distance, not only will you get a sunburn, but you will also be beset by speeding cars, alligators, and the occasional feral iguana, and you might step on discarded needles contaminated with who knows what deadly mixture of legal, illegal, and legally unclassifiable drugs, and that is just if the entire distance you are walking is across a parking lot.  Therefore, everyone in Florida has a car, but no one has money except for those of the blue-haired old ladies in the waterfront who have yet to respond to the emails from romance scammers.  If you have a car and you need money, but your credit score is in the gutter, auto title loans are an obvious choice, but they are a dangerous one.  If you are in such bad financial shape that you are considering taking out an auto title loan, or if an auto title loan has made your lousy financial situation even worse, contact a Miami debt lawyer.

What Are Auto Title Loans?

Auto title loans are personal loans that use your car as collateral.  The amounts you can borrow tend to be modest, usually less than $5,000, and the monthly payments are low.  Lenders who offer auto title loans tend to accept applications from borrowers with low credit scores, and some do not even require a credit check at all before issuing the loan.  As long as you keep making at least the minimum monthly payment, the lender will not try to seize your car.  Since most people cannot afford much more than the minimum payment each month, the repayment terms on auto title loans tend to be very long.

What Could Be Worse Than High Interest Rates, Hidden Fees, and Risking Your Car?

Any loan that does not require a credit check is risky, because you can borrow it whether or not you are sure you can pay it back.  Like many financial products available to borrowers with a less than stellar credit history, the interest rates on auto title loans are very high.  Even worse, they tend to have hidden fees, and lenders are not always forthcoming about what these fees are and how much they will cost you.  In fact, two employees of a Title Max auto title loan store in Georgia got in trouble with their employer because they would give customers printouts of the loan terms, instead of just talking a mile a minute and pointing at a computer screen until the customers signed on the dotted line.

Work With a Debt Lawyer About Relief From Auto Title Loans

A South Florida debt lawyer can help you pay off auto title loans and other high interest loans.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.

Source:

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