One of the most astounding statistics from the U.S. economy centers on the level debt carried by some Americans. It has become so prevalent to have debt in America that it has impacted the amount of money that Americans have saved for an emergency situation. It has been reported, for example, that there is less than $1,000 put aside for an emergency situation by approximately 69% of all Americans.
What is causing this unbelievable amount of debt for Americans, which is causing them to borrow money? And how to break this vicious cycle? These are complex questions, but one sure reply is that it is incredibly difficult to do as an individual, all alone.
But emergencies do happen. And here are expenses that mount up in everyday life–just paying the regular monthly bills. So what do people do when they need money? They find out where to get a loan and they find out how to get a personal loan. In fact, Americans actually take out a personal loan for a few main reasons, three to be exact. The top three reasons are vehicle expense loans (31%), personal emergencies (21%) and paying bills (26%).
Let’s examine the reason for taking out a personal loan that has the highest statistic: that is, a vehicle loan. The average amount of a loan for a new car in 2017 was $31,099. Taking out a loan of this amount is significant, but now the individual is the owner of the car. The car belongs to them, it i their property. And just think: what if there were a way to take out a loan on the car, their property?
There is a way to do that. It is called a vehicle title loan. In this process, the individual who wants to obtain money through a vehicle title loan uses the title to the car that they own as collateral to borrow an agreed upon sum of money.
As with most situations, there are two ways of looking at this process. On the one hand, a vehicle title loan can be an extremely helpful method of getting a cash loan. Fast title loans are a way of obtaining money quickly. On the other hand, usually lenders don’t give 100% of the value of the car, and if the borrower cannot pay back the loan, they lose their car.
Life is unpredictable, and sometimes the need for fast cash comes up. In that case, one could consider a vehicle title loan. At the same time, might also be a good idea to continually try and put some money aside in an emergency fund. This way, if the unexpected happens, one is not in a vulnerable position, making decisions under duress.
