There are situations when the borrower becomes relaxed with regards to credits or loans. He or she is confident of not paying loans due to quirkiness with legalities. For example, in the Philippines, you cannot be imprisoned if you do not pay your credit unless the creditor has proven that you have the capacity to pay but refused to do so. In the U. S. , some states have local policies that allow borrowers to renew their loans up to six times. Regardless of whether or not you are protected, you have to pay the vehicle title loan or you will lose something. Here are the top three losses.
Losing the Vehicle
The first thing that you have to let go if you fail to pay your car title loan obligations is the vehicle itself. Even if you attempt to store away the car from the garage and move it away to another location, creditors will find ways of getting it. You have to remember that the terms and conditions you sign are binding when you converted the loan proceeds to cash. From this alone, it is an indication that you borrowed in good faith and must repay the loan in the same faith. When you lose your vehicle, it will be uncomfortable and will definitely hurt some of your daily life activities.
Losing Your Job
If the vehicle is an accessory to your job, losing it can also affect your work and may probably even lose your occupation. Cars offer convenience to your job, allowing you to easily travel distances at a shorter period of time. It enables you to reach appointments on time, thereby, impressing your clients. It can also serve as a delivery vehicle to deliver goods or products to customers. It will be difficult once the credit company gets a hold of your car due to non-payment of loans. Initially, you will try to adjust but later on, you will find it stressful working without a car. So, it is highly possible that you will lose interest with your job and find another one which does not require an automobile.
Losing Your Face
While it is true that even those with bad credit ratings can apply for title loans, this is not the reason why you will intentionally not repay the loaned amount. Not paying on time will decrease your credit satisfaction rating as the loan provider will definitely report non-payment to authorized credit bureaus and institutions. This result to the possibility of being declined any type of loan in the future. Most financial institutions have access to credit ratings.
If you do not want to lose the top three things listed above, you need to pay your borrowed money. If you temporarily cannot, then negotiate. Be aware though that negotiation means that you will be expecting another set of interest and surcharges. It is also better to avoid a vehicle title loan as a source of extra cash. It’s best to devise an alternative source of money instead.
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