October 21, 2019
How a Title Loan Can Help You During The Holiday Season
A Title Loan for the Holidays
Many people wait for the holidays to celebrate, take some time off work, and reconnect with their family and friends. It is a festival of endless shopping, food, and social gatherings. Consequently, when the holidays are near, you always need extra cash, especially if you have a very large family for gifts, parties, or if you decide to go on vacation.
Everyone feels the pinch at Christmas! A few people can fill this gap by opting for part-time work, odd jobs, or freelance gigs. However, not everyone can do it. Gathering money to fulfill these troublesome expenditures can be intensely stressful.
According to a survey carried out by Experian, the average American spends around $846 on just the gifts during the festive season, an increase of 14% from the previous year. That is a LOT of money! The same study found that millennial shoppers are expected to spend over $1,034 on gifts this holiday season. Men planned to spend $1,050 while women planned to spend $719.
30% of these shoppers will use a credit card to shop, which means that they could not afford the gifts without turning to credit. Credit cards are a viable option, but many consumers avoid paying through a credit card because of the high-interest rates. Credit cards also require you to have a good credit score, so there’s only so much you can borrow.
What Are Car Title Loans?
Another option to pay for those expenditures is car title loans. A car title loan is a loan that requires an asset (a car in this situation) as collateral. Title loans offer flexibility, which makes them more popular among consumers.
Title loans do not need a good credit rating for the eligibility of the loan, and there are no strict application requirements. A title loan is generally approved quickly with little formality and can be for an amount as low as $100 or as high as $5,000.
The most common form of a title loan is a car title loan in Florence, Alabama. In this case, the individual looking for a loan must own a car.
If you own your car outright then it’s just sitting there depreciating in value. With a car title loan, you can leverage the value stored in your vehicle and put it to your advantage. As you have collateral for your loan, you’re able to borrow more and at a lower interest rate than if you were not using collateral to secure your loan.
Procedures to Apply for a Car Title Loan
When applying for the loan, you will need to sign the title over to the auto loan title company as collateral. In return, the company could lend up to 25% of the car’s total value. The amount borrowed can be lower or higher depending on the need and the value of the car.
Typically, that is all you need. You will fill in some basic details such as your contact details and show some ID, but a credit report is not required. You can be in and out of the car title loan company’s premises in around 20 minutes with the cash you need to see you through the holiday season.
The borrowed amount can be paid back in the form of one-time payback, or monthly recurring payments generally over a period of two years. In case the borrower fails to pay back on time, or misses continuous payments, the title loan company is permitted to take over the ownership of the borrower’s car. So this form of loan is only sensible if the borrower knows with certainty that he will be able to pay back on time.
Easily Take Care of Emergency Expenses
People generally do not have much time when the holidays are around. They do not want to get in the long bank lines, waiting for their turn, submitting a long application, and wait for their loan to be approved (or more often, not approved). Remember during the holidays, many people are short on cash and are looking for loans, making this period one of the busiest times for banks. This makes a car title loan a more attractive and feasible option for people looking for a quick alternative.
People take out car title loans in the winter for other reasons too. There could be some unanticipated costs. For example, extreme cold weather leads to more heating, and in turn higher electricity and heating bills. Appliances often break down in the winter and need to be replaced. These may include but not limited to dishwashers, washing machines, televisions, refrigerators, and so on. When you have guests coming over, you might need an extra heater or that old furnace repaired. Moreover, if you host children or friends every year, you may need extra space for them to crash. You might need to book a nearby hotel or similar establishment.
Car Title Loans Are a Viable Option
All of this holiday spending can put a strain on one’s pocket, especially if it is an unexpected emergency expense. Other than these circumstantial expenditures, one might be living in a mortgaged house. There could not be a worse time to fall behind on payments when there are holidays and you have already been drained financially. With the quick cash of title loans, one does stave of these problems until your next paycheck.
All of the reasons specified highlight the advantages of car title loans during the holidays. They are a versatile, convenient, fast, and readily available option that car owners can use in Florence, Alabama. The availability of a car title loan can be a lifesaver during the holidays once funds get low.
At the end of the day, holidays are celebrated throughout the country, and they should not be spent ruminating over financial problems. Car title loans in Florence, Alabama are a simple and fast way to ensure you and your family have a merry festive season.