Popular with most people in Utah, title loans only need you to put up collateral, such as your car, to qualify for one. In return, the lender can advance you up to 25 percent of the vehicle’s value and retain the title, according to Utah Money Center. Naturally, you must own the car in question to qualify for a loan.
While convenient, title loans are only half measures to help you out of a tight spot. If you constantly need such loans, it’s time to reevaluate your money habits. You can take some of these measures to get a better grip on your finances.
1. Limit your credit card usage
While credit cards are convenient, this privilege comes at a great cost, especially if you can’t pay them off within the grace period. If a purchase goes beyond this period, you are liable for paying interest on it. Large debts on the card lead you to incur high-interest rates.
Again, if you are late to make your monthly payments, you face additional fines and penalties. These charges grow along with your loan, and in the end, the debt might become unmanageable. If you are keen to build your credit history, put small purchases on the card and pay them off immediately.
2. Manage your debts
With the cost of living skyrocketing every other day, you will accumulate some level of debt to meet your basic needs. The trick here is to not to get in too deep. Just borrow what you can afford to pay and be sure to pay it in full within the stipulated timelines.
However, if you’re carrying a substantial amount of debt, the kind you can’t pay off at once, you need a plan. The snowball approach is proven to give the best results. Make a list of all that you owe, starting from the largest to the smallest.
Make minimum payment on all debts when they are due each month. Put any money left over toward paying off the smallest debt on the list. Once you wipe off the smallest one, channels the freed money towards clearing the next debt on the list. Doing so creates a clear roadmap leading to being debt free.
Money management remains a tricky endeavor for many people, and it leads them to rack up huge debt. Luckily, you can escape this debt trap get a grip on your finances.