Financial experts tend to advise extreme caution when someone thinks about getting a Cash Loan For Car Title in West Palm Beach FL. The common image of a person getting a title loan is someone who is dealing with economic hardship and is experiencing a sudden financial crisis. However, if handled wisely, a title loan can be a good way for a person to get funding for something he or she would otherwise have to pass up. The caveat is that the loan should be paid back well before the due date. That way, the borrower has a substantially lower interest payment, even though the actual interest rate is high.
Consider someone who has recently acquired a job that pays very well, but doesn’t have any savings yet. Perhaps an amazing apartment comes available with rent that this individual can afford. Yet there’s no money in savings to pay for a security deposit and to get utilities set up. An apartment like this at this rent price may not appear in the listings again for many months, and this person wants it badly. Does it make sense to get a Cash Loan For Car Title in West Palm Beach FL?
The answer is yes, if the borrower can pay the money back quickly. An example of a typical loan is one for $3,000 with a term of 12 months and an annual interest rate of approximately 250 percent. That interest rate is what startles many people because it sounds exceedingly high. But if the borrower pays the loan back within one month, the interest paid is down to about 18 percent of the loan. If the borrower pays it back within two weeks, the interest is down to about 9 percent. This is why it’s important to borrow money from an organization such as Cash 2 U, which does not have any prepayment penalties.
Sometimes a situation is simply too good to pass up. It might be a spectacular apartment, a great used vehicle at a very low price, or something else a person knows is a superb deal. When there’s no other option for quick cash and the person can pay the money back quickly, a car title loan can be an effective solution.
