Here is the key to your Financial Toolbox

Thursday, October 4, 2012

Thinking of a Car Title Loan? Think Again!

Once again I have a cause to start writing Blog posts for Finding Financial Freedom. Once again I see atrocities happing to the middle class and mainly the blue collar worker. Years ago it was easy to say blue collar as the blue collar is the workforce and the backbone of our country. Years ago President Abraham Lincoln emancipated the slaves but sometimes I wonder. The reality is that we the middle class are enslaving ourselves every day and we are not aware of what we are doing to ourselves. Between the Large Corporations, Financial Institutions, and Marketing Today the Middle Class has less disposable income than ever before. If you wonder why ask those who you elect into office. However instead of complaining about it because it is going to take years to make a change, we at Finding Financial Freedom would like to add solutions to a dedicated group of readers.

You say why only a dedicated group of readers?

Because when the dedicated groups of readers have success with knowledge others will learn and follow. We can’t save everyone but we can save those who want to learn to become debt free and successful financially and within themselves.

So Let’s Get Started

A member or our family sought and received a title loan. This person has struggled for years and came into a sum of money from an estate which our family member had used to buy a family car. To compound the problem he is going through a separation and other compounding problems along with financial problems. Many of us fall into this category and are no stranger to the complications of a failing relationship. The threat from constant financial struggling is enough of a strain on today’s relationships whether the couples are married or not. By taking the time to understand and challenging the problems of today’s economy is essential to happiness and long lasting relationships.  We at Finding Financial Freedom understand what others are going through and we are here to help you.

Back to the topic

Anyway this family member got this title loan and put up the family car for a one thousand dollar loan. His family car was worth considerably more than the one thousand dollars and the three hundred percent interest our family member needed to pay on the note which was four thousand dollars total to solve the  note unconditionally. It is also important to know there is not a prepaid in full discount or prepayment break on the interest. Once you sign the note you pay in full to solve the note. Finally in most cases a bankruptcy exemption is written into the note and the laws most other financial intuitions must follow car title loan companies and payday loan companies are exempt from because of this exemption.  

The terms of the note our family member had was ten monthly payments of four hundred dollars to solve the note. Needless to say our family member did not make it two months and he defaulted on the note. So the title loan company came and repossessed the family car. Now for our family member to get his car back our family member now owes the car title company four thousand one hundred dollars or the car goes to auction or for sale. This is because the car title company charged our family member’s account five hundred dollars for the reposition. The car my family member owned worth four times as much as the loan with interest is now up for auction or sale. This means for the miniscule one thousand dollars my family member borrowed these predatory lenders will make a sixteen hundred percent profit on his family car. It is not only the greed that is the atrocity, my family member now does not have a car for the family and our family member is now out of work without the car. This is a tough position for the bread winning member of the family to be in.

Are you appalled?

Notice I said predatory lender. Just because this type of lending is legal in most cases, does not mean they are not predatory lenders. To most of us this is more an ethical or moral issue than a legal issue. Predatory Lending is simply is taking advantage of those who are at a disadvantage. Also with predatory lending there is no credit check or income verification which means in most cases the person who took the loan will default leaving them at the disadvantage. And again yes, this form of lending is legal.


Final Words

It is going to take years to change legislation in Washington to help individuals or consumers who fall into the predatory lending trap. As citizens and consumers we have the right to demand changes in legislation to protect us the consumer from predatory lending. The best way to stop this and other predatory lending practices is to work with our readers to educate them, to get them to register and vote, and take interest in the rights ourselves as consumers and citizens of the United States. This is doable and all hope is not lost it will take many of us to make a change and the change starts here. These lenders have lobbyist on their side. We can be advocates for our side. Please join Finding Financial Freedom so we can help those who need help.

Us the hard working Blue Collar Working Class and Middle class.

Please sign up for our e-mailing list so we can keep you updated with hints as well downloaded forms you can send to your senators and congressman when they become available to us on a specific subject concerning our financial well being.

We can make the change and stop the greed and atrocity in its tracks by making personal financial changes and causing real change! 

Knowledge is wealth! Do you want more information on Title and Payday Loan or know someone in need? This is an excellent resource for guidance and help!
More Information on Payday and Title Loans

This is from the September 15, 2011 post when I went on my last rant after researching Payday Loans. I moved it here because it mixed better with Car Title Loans than with fining the right financial institutions.
This Week’s Rant

I cannot hold off on this one. Title and Payday loans if you are involved in them as soon as you can get out of them. Credit Cards or anything that is thirty percent interest or more try to find a way out. Just figure, you have a loan for one thousand dollars @thirty percent interest you are paying three hundred dollars interest on that principal if you do not pay that money back in that year. Even the institution seems to be an up and up financial institution morally and ethically any more than twenty five percent interest to me is predatory lending. The only thing worse than predatory lending is loansharking. If you have some collateral and a job you may be able to find someone you know to help you for fifteen percent or less annually depending if you know who investor is. Or, maybe someone you know knows someone that will invest in you. There are people out there that will help out hard working people like you and I am not talking about loansharking or pawning either. This process is called t is called taking back a Note or private lending. People who take back notes know how to draw up a legal binding contract on holding something of value as collateral. These people have money to lend because they are willing to take some risk to make a little more than what they would make if their money was only drawing interest in the bank. What you may give up as collateral a bank or financial institution may not have interest in holding as collateral but still has a real value that if it can be appraised and can be sold for recovery of funds in the result of your possible default for nonpayment. It can be of interest to someone willing to take back a note or give you a loan on that collateral. You have to remember financial intuitions are not in the business of retailing they are in the money lending business, so some things of value on the market are of no interest to financial intuitions but may be of value to other investors. You can look through the phone book but these investors are usually private individuals and are usually found by the reference of other people.

One thing you have to consider with these loans you is you will only get fifty to seventy five percent of the value of your collateral even if it is something that will gain value as time goes on. Collateral as your guarantee to pay and if you do not pay the lender and default the holder has the right to sell the collateral and be compensated for his or her efforts in trying to help you. One last thing while most investors are legitimate in their dealings consult a legal expert before getting into any contract. Read to or have someone read the contract who knows contracts. They will make you aware of any concerns you may have to question before proceeding. We do offer Just Ask on the sidebar who may be able to help you.

 Contact me with any questions @ or by phone @ (484) 868-2588.
You can also come back to us by remembering!