I have no idea why lately I have been intrigued with businesses that focus on targeting low income people. I know that I have seen a commercial recently that was advertising payday loans. I guess this piqued my curiosity that it was a profitable enough industry to advertise on tv. Or that tv ads have come down that much in price to make it worth their while.
Title loans are targeted to those who actually own their own car outright. A title loan (also known as a car title loan) is a type of secured loan where borrowers can use their vehicle title as collateral for the loans.
One of my kids had a pos car that needed to be scrapped and one of them suggested that they should get a title loan on the car, and consider it sold and disposed of. An intriguing idea, but I believe that the title loan companies have some sort of recourse in case of such situations. I also mentioned the liability would still be ours, since the title was in our name. So, the car was scrapped instead.
Again, these types of loans carry extraordinarily high rates. Targeting those who are desperate for cash and have few places to turn. Where they are betting their cars that tomorrow will be brighter than today. How often is that the case?