Surveys indicate that many consumers are using automobile title loans to raise financing. Typically, a consumer who owns a paid-off car hands over the title on the car to a lender, and in return, receives a high interest loan. The loan term can be a short as a month, or as long as two or three years.
Unfortunately, automobile title loans, or motor vehicle equity lines of credit, are often extended to consumers with very poor credit and income. These loans often carry very high interest rate. As a result, many consumers who obtain these loans find that they cannot pay them off. Consumers are then forced to renew the loans, plunging themselves deeper and deeper into debt.
For most consumers, a car is a necessity, not a luxury. So they feel forced to renew the loans, at extremely high interest rates and origination fees. Consumers feel that if they do not pay these high interest rates and fees, they will lose their car.
But help is available. To a consumer burdened by expensive automobile title loan, Bankruptcy could provide a lifeline. A consumer might be able to propose a reorganization plan, reduce the interest rate or principal on the automobile title loan, pay off the title loan in three to five years, and possibly wipe out most or all other debts.
If you were forced to take on an automobile title loan, and now find yourself struggling with the exorbitant interest rates and fees, please contact Fuller Law Firm, PC, for a free initial consultation to find out how we might be able to help you.
Don't delay! Automobile title loans are expensive. The longer you wait, the more of your hard earned income could be unnecessarily wasted on interest expenses and fees. At Fuller Law Firm, we have helped thousands of consumers get relief from debt by proposing a bankruptcy reorganization plan.