I really hate to admit this because it is very embarrassing. Shhh!! Don't tell my mother. I am on a fixed budget. I got a nice settlement from the VA(Veterans Affairs). I decided to purchase my mothers old 2003 Cadillac. I paid less than 5k which is a great deal. I had the title and everything. Well true intelligence took over and I pawned the title to my car for extra money. What I didn't realize this is a racket. I was paying the monthly amount not realizing that you are not paying off anything. I'm talking about $500 + per month. One day I saw this ad to payoff your car title loan. This made me curious so I called the car title place and found out I did not make a dent in it. I felt so dumb. lol!! So I get the company to buy out the loan and I make monthly payments to them. I will never do that again. Please don't do a title loan for a large amount of money unless you plan on paying it off quickly. Some people may know this, but I didn't.
I have used title loans and payday loans before. Ive had mostly positive experiences using both of these products BUT you have to understand the the interest rate on both of these products is extremely high. Neither one is intended to address long term financial needs...pay them off early and only take them out in an emergency. But, saying this, they both provide a quick and easy way to address a financial emergency and so long as you don't default, neither one afect your credit: positively or negatively.
