So, you got your money from an auto title loan company? What do you think will happen afterwards? There will always be the best and worst things and if you are not prepared, you might only get the worst.
Succeeding events after a borrower receives the loaned amount is a matter of personal decision and initiatives.
Thus, it is wrong to assume that all title loan companies exploit the sad plight of borrowers who have no other means to solve their short term financial crisis.
Alternatives to Auto Title Loans There are two ways of looking at this situation: the borrower has exhausted all other alternatives or the borrower has yet to exploit such alternatives.
It is always safer; however, to assume that the former situation occurred and to compound the problem, the borrower might have a bad history when it comes to alternatives means to borrow money.
Thus, the borrower seeks the help of auto title loan companies.
The Best Things to Happen If the borrower is wise enough to manage the loan proceeds, he or she can achieve the following: · Reduction on credit and other financial obligations · Increase in credit rating as credit is reduced · Can borrow again if the whole amount and the interest are paid · Lesser stress and emotional difficulties because cash problems are solved · Can still work effectively as the car is not surrendered unless the borrower defaults on payment The Worst Things to Happen This scenario can only happen if the borrower cannot fulfil the obligation to pay the loan and the interest.
As a result, he or she will suffer the following consequences: · Lose the car and also some of the conveniences afforded by having a vehicle such as travel comfort and speed · Will affect his income generation activities like lesser number of clients call to accommodate in a day because the borrower has to take a public transport system which can have an effect on schedules · With lesser number of clients to visit, there is also reduction in terms of possible earning potentials.
· Given all of the above situations, it is highly possible that he or she will lose self confidence and motivation to perform well on the job as well as distress some personal aspects of his or her life.
In numerous situations, there are borrowers who are able to avoid the worst situations by performing preventive measures such as: having a second or even third job for additional earnings, changing lifestyle and habits to reduce personal consumption and spending, resorting to budgeting and prioritizing spending habits, and of course bearing in mind not to fall into credit trap again.
To become financially secure is a matter of personal decision.
Auto title loan companies cannot help solve financial problems.
They can only provide temporary solutions.