How Car Title Loans Can Help Unemployed Californians
February 13, 2012
Let’s face it, jobs aren’t easy to come by these days. The economy has been described as the worst since the Great Depression. That’s not good at all.
Unfortunately, many Californians have not been able to escape this bleak economic reality. In fact, California is among the worst states in terms of unemployment. According to the Bureau of Labor Statistics, the unemployment rate in California is 11.1 percent, giving it the second-worst unemployment rate in the United States. This means that 11.1 percent of Californians who seek employment cannot find it. Thus, if you live in California, chances are that you and/or someone you know cannot find a job.
Without having a job, you’ll have to find another way to pay bills. Unemployment compensation can help, but that is usually just over half of the amount that you made while working. That’s not going to cut it for many people.
So, with reduced or no income coming in, you may feel like you are out of luck. What can you do?
Consider a Car Title Loan
A car title loan is a loan against your vehicle. It is similar to a home equity loan in that it uses an asset of yours as collateral. However, instead of putting your home on the line, you’ll be using your vehicle as collateral.
A car title loan is generally given based on the value of your vehicle. If you own a vehicle that is currently worth $10,000, a lender will generally lend an amount of, for example, 50 percent of the value – $5,000. That $5,000 will help you get by until you are able to find another job.
Will I Lose My Vehicle If I Take Out a Car Title Loan?
With any loan, there are risks involved. However, the risk of losing your vehicle is very small with a car title loan.
According to the Cato Institute, 4 to 8 percent of car title loan customers end up having their vehicles repossessed. This means that 92 to 96 percent keep their vehicles. Those are strong odds in your favor as a consumer.
So, the risk of losing your vehicle is minimal when taking out a car title loan.
How Will I Pay a Car Title Loan Back?
If you’re unemployed, you’re probably looking for a job. You also probably have unemployment compensation or a severance package to ease the strain on your wallet.
With this in mind, taking out a car title loan in just the amount that you need will not be a very risky situation. For example, if you need $1,000 to make ends meet over the next month, take only that amount out. After all, this isn’t a time to go out partying every night or buy a $2,000 watch!
By taking out only the amount that you need, you’ll minimize your risk in this situation. At Car Cash Loans, you can get a loan starting at $500 – just enough to pay your bill. You can also get much more than that if you need it, giving you flexibility in your financial needs.
As soon as you find a job or bring in some other source of income, you can pay the loan back. In fact, it is a good idea to pay it ahead of schedule if you end up landing a job quickly so that you can minimize your interest payments.
If you are 1 of the many unemployed Californians these days, a car title loan can help you make ends meet while you seek a new job. If someone you know is unemployed, it may be helpful to recommend a car title loan to him or her, as well. Consider it as 1 of your options during this difficult time.