Emergency Fund Title Loan - The Reasons Why You Need It
Budgeting, cash flow and governing the way cash flows through the system are the three pillars of the international monetary system. The same themes are applicable for personal finances as well. As there are fluctuations in cash flow and demand for money in the financial system, so is in the area of personal finance. The principles that work well for the large scale money management are also relevant for personal finance related to managing household finances.
Borrowing money is considered as a way to bridge the gaps in finances that can make life comfortable
Borrowing money to meet economic goals is a well-accepted practice for institutions and governments. On the personal front too, there are reasons to borrow money such as meeting expenses that may or may not be foreseen. Sometimes, borrowing money is considered as a way to bridge the gaps in finances that can make life comfortable. What situations could drive you to look for emergency funds through borrowing has been discussed in this article.
The human body can well be compared cars as there is one striking similarity between the two. Both can fail at moments when you least expect it, and this leads to another similarity between the two. When you face some medical emergency that stretches expenses beyond the coverage limit of health insurance or when your car suddenly breaks down in the middle of a journey, you need cash handy to overcome the crisis. Needless to say, most often, you will end up needing much more cash than what you have.
Above makes it an ideal case to borrow money to bridge the gap with instant availability of money.
The immediate requirement of cash arises from an emergency situation. Perhaps this is the reason that car title loans, which are most popular in the category of quick personal loans, are termed as emergency loans. However, the loans granted without ever asking for reasons, and can also be used for any purpose other than the case of pressure. The cost of the vehicle determines the amount of loan that you would be eligible for, but it is never less than $2600.
Remodeling Your Home
Car title loans approved are without asking for any reasons, and hence it can be used for various purposes including some home modification and remodeling. The loan is especially applicable for those who are reluctant to get a line of credit against the home or if there is no equity left in the home. The car that you own can help you fulfill the dream of incorporating new features in your house. From doing some landscaping to remodeling the kitchen, and from installing solar panels to replacing the roof that has got damaged beyond repair or having a swimming pool constructed—you can do whatever you have in mind with the borrowed sum.
One thing is cleared that the loan will only help to top up the fund that you already have. There is no way to create the entire fund because the value of the car on that date will determine the loan amount that you will qualify. Since car depreciation rates are very high, it is natural that the loan amount will always be quite nominal as compared to car loans or home loans.
If You have Poor Credit score
You can cash out your car without having to sell it and keep on using it the way you want after you have availed the car title loan. The car is the central point of consideration for approving the loan. People who have poor ratings for credit can avail car title loans. Therefore, for those who might be turned away by other lenders that deal in unsecured loans, getting a car title loan is easy. The loan is approved within a day considering the car as collateral security. In emergency situations this time goes down to only 6 hours or even an hour. Keeping your vehicle in good health is a wise thing to do in case you want to avail car title loans.
Restructuring Finances through Debt Consolidation
When you are bothered by too many lenders that comprise your mortgage portfolio, you can always seek a lifeline for debt consolidation. In this process of debt management, many debtors are replaced by a single lender who would provide the money that you need to pay off other creditors. The new loan can be at lower interest, it may have a short duration or repayment (usually limited to 5 years maximum), and have fixed monthly payments. The new loan can be car title loan. Work out the present value of the car and take into account the mileage, condition model and make to estimate how much you might be eligible.
Pay the Bills
Concerning household finances inconsistency in cash flow cannot be avoided. The need for loans to bridge the gaps may arise quite often. Even with the best foresight, it is impossible to anticipate the unlikely financial shocks that you might encounter. Sudden bursts in financial needs can upset the best financial plans, and paying bills or meeting other expenses for the household can become a problem. Taking a car title loan is a useful short-term measure that can help you to tide over the crisis and put your finances back on track. However, if the crisis occurs too frequently, you need to review the budget that might need some corrections.
Despite the ease of borrowing, you should never become a habitual borrower, or this can put you into a debt trap that can become a menace and create a mess of your finances. Borrow when needed, and pay attention to timely pay back so that you have the peace of mind that people with good credit scores usually enjoy.