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November 21, 2014 / Ryan Edward Roberts

Life Lesson #2

Never EVER, no matter how desperate you are, borrow money from a title loan business.

I know that there are times in most normal folks lives when we get financially desperate. You have to pay a bill but you have no money to pay it with. The electricity is going to be turned off and you feel like you are powerless to do anything about it.

There are exceptions to every rule, but I know from my experiences that these horrible loans are just not worth it. Get past your ego and ask someone for help.

These title loans sound like an easy way out, but the reality is you probably will not be able to pay it off in the 30 – 60 days they typically stipulate in the contract. What will most likely happen is you will have to go back every month and pay some of it, and then refinance the balance. With the interest rates and finance charges that they impose, you will end up just paying those each month while barely touching the principle. Bottom line is you will end up paying them back several times (at least) the amount that you actually borrowed from them.

The last time I made this mistake was just that…never again!


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