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7 Useful Tips To Enable You Save Money When Obtaining Title Loans

Posted April 6, 2013 by Harry Pearce to Finance 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

In the modern society, it is hard to imagine life without loans in one form or another. Small types of loans such as car title loans come in handy in the middle of the month when you are totally broke but urgently need to buy the necessities of life such as groceries and food supplies or when you need to pay an urgent medical bill.

However, the majority of individuals who take title loans do not use them wisely. For instance, people tend to shop for random things simply because they have extra cash in their pockets. If one is not careful, he or she can get into serious debt just by misusing the car title loan. Here are seventips that will help you use these loans wisely and save money along the way:

1. Be aware of the interest rates

Nothing comes free in this world. Know that the interest you pay on your title loan will come from your own income. Depending with the type of car title loan you have, you will often pay an interest of 15% to 300%.

2. Take advantage of the benefits

At times, using a car title loan has its benefits. You may be able to pay your bills on time and avoid the power company disconnecting you from electricity or the water company disconnecting you from the water. You can also be able to pay your medical bills and avoid any trouble with the law.

3. Use it as an emergency

You should treat your title loan as a facilitator and not as a tool for spending money. Only take the loan when you have real emergencies. If is better to pay cash for items when you can since using a title loan will charge you a high interest on the same item.

4. Have a timetable

If you want to avoid taking a car title loan unnecessarily, you should make a timetable where you fix the dates of paying all the bills on time. This will help you not to delay on your bill payments and pay extra.

5. Keep a monthly budget

Ask any financial advisor and he or she will tell you that the key to saving money and avoid debt is keeping a monthly budget. Budget all your essential things around your monthly income and avoid as much as possible taking a title loan to buy your necessities. If there is anything, you forgot during the budget or if something runs out during the month and you have no cash, then try using your credit card first rather than going for a title loan.

6. Teach your children financial responsibility

Credit cards are like expense provoking mechanisms that tempt you to feel like spending. Advocating credit card to your children can land you in serious debt since they children might be spending the money without really understanding the concept of credit cards. Give them a monthly allowance in cash and let them learn how to manage their money before introducing them to credit cards. This will help you not to take a car title loan just so that you can pay the debts brought about by your children.

7. Use one credit card

Depending with your income; you can be able to obtain more than one credit card from different lenders. However, the more credit cards you have the greater the temptation to spend on items you do not need. It is best to maintain only one credit card to keep your finances in check. If you have multiple credit cards, you might consider consolidating them into one card for starters.


About Harry Pearce: Enda Fallon is an energetic and passionate blogger who enjoys writing about finance. He has offered millions of citizens across the sphere advice on how to use their loans wisely at home and in other areas. One of his recent interests is title loan in San Diego.

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