Learn More About Debt Consolidation and Car Title Loans
Debt can add up very quickly. For many Americans getting into debt is the only way to achieve long-term plans, or fund a personal emergency. Once all of that debt adds up—and it can add up very quickly—getting out of debt can seem like a daunting task. For some, debt consolidation—combining and chipping away at all your debt, maybe a practical option. If you are looking for extra funds, you will probably come across the option of getting some type of line of credit or a loan. Most people may not think of a car title loan as a way of debt consolidation, but it is a viable option that may help someone get out of debt.
What is Debt Consolidation?
Debt consolidation gives a person in debt the option to combine their debts into one form of payment and work on paying it off. Many people find that throughout the course of their life they may acquire more and more debt. Sometimes this can all happen in a short time frame, accompanied by the unexpected. Whatever amount of time debt takes to accumulate for a person, it can become overwhelming. When looking at the common ways that debt is acquired it is not too surprising that most Americans have a good amount of it.
In addition to the large amount of debt a person might accumulate, the actual money borrowed may not be the amount that must be paid back. Things like interest rates and the duration of loans could end up costing someone hundreds of dollars or more in extra payments.
If you are trying to manage your debt here are a few ways you may be able to improve your financial situation:
- Budget
- Pay more than the minimum due on bills
- Make a schedule for monthly payments
- Do not borrow more funds than needed
- Begin with paying off the highest debt first—It will not only feel like a great accomplishment, but it can also make all other debt more manageable.
Taking a few steps like these may help you stay away from getting into financial trouble in the first place. Even if you are already in debt, practicing these steps may help you get out faster and will help protect your credit score.
How Debt May Affect Your Credit:
Having a lot of debt from different sources can make keeping on top of payments difficult. For example, small habits can add up, It is safe to say that we probably all have been there; habits like forgetting what day something is due, or simply skipping out on payment because of an unexpected expense, these habits can all impact credit. Having a negative credit score can hold a great bearing on your financial agency as you move through the financial world.
Can You Practice Debt Consolidation Even if You Have Poor Credit?
Yes! When trying to go through with debt consolidation most people will try to pay off all their debt with a zero-interest credit card, or they will seek out a traditional loan. However, if you have poor credit that may be very difficult. There is an alternative type of loan that works with poor credit history, called a car title loan.
Car Title Loans:
At Max Cash® we would love to try and help you practice debt consolidation despite poor credit history.5 We can help you explore title loans. Title loans work by using your qualifying vehicle’s title as collateral (The vehicle should be owned by you, but we could work with existing loans on it). The amount you receive is based on your income, the Kelley Blue Book or Black Book value of your vehicle, and finally your ability to repay the loan. The great thing about these loans is that poor credit or poor credit history isn’t a huge factor when influencing eligibility for the car title loan.
Nowadays getting into debt for many Americans can happen before they even realize it. Once a debt is collected it can become a hassle to pay it off. Debt consolidation may be a good way to get rid of debt by transferring funds and paying them off altogether. For people with good credit finding a low-interest credit card or a traditional loan are both viable options. For people who have a poor credit history, a car title loan may make debt consolation accessible.5
Looking to learn more about debt consolidation and car title loans? Visit the Max Cash site to apply for a car title loan today!
