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4 Key Factors to Succeeding in Car Title Loans

4 Key Factors to Succeeding in Car Title Loans

For anyone trying to find a reliable and affordable car title loan, the options can feel rather limited. Even when you find a company you would like to lend from, you might find getting an actual car title loan can be a bit of a nightmare.[1] To get around this problem and to help you avoid these issues, you should always be ready to look into the best ways to get the right kind of deal.

To make that possible, you need to turn to the right kind of thinking. Let’s have a look at the best ways you can borrow money without feeling like you are fighting against the tide.

1. Know Your Financial Limits

One major problem that we see a lot of is people going for the kind of car title loans they are ineligible for or cannot afford. Don’t start trying to look as if you are in a better situation financially by going for the big-shot loan. Be realistic in what you can afford – it’s better to pay off a smaller value in a small window of time than take forever and a day to pay off a loan with the larger value.

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Always take the time to know your limits and make sure that the choices you are making are a big help to you. Look at your monthly expenses and what it leaves you with. This will help you determine how much you can afford to spend on this kind of monthly loan fee. Longer repayments mean a longer time to pay off your loan and smaller fees. So it all boils down to the kind of loan you feel like you want to take on.

Just make sure you don’t try and put yourself in for the higher deal thinking it may make you look more serious. If your rating is not a match, you won’t get what you ask for, regardless of value.

2. Understanding Penalties

Like any other form of loan, you have to make sure you are on time with payments and various demands when paying back on your car title loan. While this can be hard to get right, it’s something you do need to take into account. A failure to do so can leave you unable to meet repayment costs, especially if you need to pay a penalty on top of it.

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Don’t take a loan thinking that by paying it back tomorrow, that you will suddenly get a you a superb credit rating. Fast repayment is as bad as slow repayment in some cases.[2] Paying it off several months early can actually be a penalty against you, as stupid as that may sound. The reason why is simple – the people who run these systems want to make as much as they can from the loan. They need that collateral, so by taking that away, you are softening the validity of other investments they have made.

The higher the interest for the company, the better, so don’t expect them to be singing and dancing if you try to pay the full amount of the loan early. Understanding this now can save you the trouble in the future, if it does occur.

3. Don’t Expect Instant Approval

While many firms like to promise instant approval, the reality tends to be quite different. While some will only accept you online or offline, some do both. But anyone that wants to push an approval through without proper checks is worth avoiding. Some can take a few hours and some take just about 20 minutes, but as long as there is a delay, you know you’re in the clear and working with a reputable loan company. You want to know someone went to ratify that you are the kind of customer that they want, need, and can afford. Instant gratification is not a good sign, although it may be appearing so.

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Always be sure that the people you are investing your time and effort into will look into any extras your approvals or title loans may come with because it’s very easy – too easy, really – to get sucked in by fast acceptance and the like. These tend to come with little underhand clauses, so make sure you only look to get involved with firms that can be trusted to play the game.

4. Check the Licensing

For most people, another major problem that can really hamper and limit the chance to do well with car title loans is getting involved with licensing when they don’t really understand what is going on. It might seem like a good idea, a fair investment, and a good level of affordability in the loan – but is it even legal in your state? Ensure that the lender has legal eligibility to even offer you a car title loan in the first place.[3]

There is nothing worse than wasting time setting up a plan only to find out that the loan will not or does not cover your particular area. Licensing matters too, as it can leave you high and dry in many ways. If you get involved with unlicensed lending, then you are out of any kind of protection or luck in the general aspect. You can easily avoid this problem from escalating further just by checking if they are a reliable, safe place to lend from.

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Take the time to do that now and you can avoid any kind of trouble with regards to this later on down the line. Understand the predicament today and you can prepare to conquer it tomorrow. So, equipped with the tips above, you should find it much easier to find quality car title loans in the future. With a smart plan and a way to make your case come across as one worth considering, success is all the more achievable.

Featured photo credit: newcarcanada via newcarcanada.ca

Reference

[1]https://www.consumer.gov/articles/1013-car-title-loans
[2]https://www.consumer.ftc.gov/articles/0514-car-title-loans#roll-over
[3]http://www.investopedia.com/articles/personal-finance/110714/car-title-loan-requirements.asp

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

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