Are you better with a loan for a car from a bank, credit union or the car dealer
Make The Best Choice For Your Car Loan
It is so exciting to get a new car. Whether the car is totally new, or slightly used it is an awesome feeling to have something that is yours and that looks great. A car is a purchase that will be used for many years so it is very important to make the right choice. Aside from the fact that a car is a necessity in many places a car is the second most expensive thing that most people will ever purchase after their home in their lives.
Few people have the funds to by a car outright, and for that reason many people decide to get a loan for their car. There are different places that a person can go to in order to attain a car loan. They can either go to their bank, credit union, online lender or often they may be offered a loan from the car dealer themselves. Both options can have advantages and disadvantages, so it depends on which one a person wants to go with.
Getting A Loan From A Bank
There are many reasons why a person would choose to get a loan from their local bank. Banks are entities that people trust. They are the places that hold their money and generally people feel like their banks have their best interest at heart. The good thing about getting a loan from a bank is that they already have a relationship with the person and because of that the bank will be willing to pardon things like missed or late payments. Apart from that, the bank may offer better interest rates for their loyal customers.
Getting A Loan From The Car Dealers
Car dealers are in the business of selling cars, they are professionals that know what it takes to get a person to buy a car as quick as possible. They offer deals for car loans as an incentive to people that may purchase a car from their dealership. The good thing about getting a loan from a car dealer is that at times they will offer a loan with very low or even no interest for a specified period of time. A person may be able to drive off with a car without having to pay interest for up to a year.
In the end it is really a person’s choice who they want to get their car loan from. Both banks and car dealers can offer good deals on car loans. There are really benefits to both options, and it is best to choose the one that will give you the lowest interest rates over time.
One of the best New Years resolutions that you can make for yourself is to be debt free in 2014. To some this may seem like an insurmountable challenge when they see that each month no matter how hard they try the credit card bills seem to increase. There are some small things that you can do throughout the year to accomplish your goal if you really commit yourself. Here are some tips and techniques to help you to your goal of debt freedom in 2014.
One of the first things you should do to avoid unnecessary credit card debt is to carefully review your statement. If you see small charges for gasoline, fast food, and small ticket items that you are not able to pay off on a monthly basis, then it is time to change your spending habits. Using the credit card is so easy that you find yourself using it for just about anything. The problem is you are paying interest on all those charges. So add up a years worth of fuel purchases and add 20% interest at a minimum, and you easily tossed a few hundred dollars out the window. Pay cash for fast food, gasoline, and any small purchases. That extra couple hundred dollars can help pay down your debt.
Take the extra money that you will have from not paying interest on those small purchases and stop paying the minimum on your credit card debt. If you are even going to get the debt under control you have to pay more each month to cut down the debt and save you all those extra dollars you are paying in interest. Give up a cup of coffee a few times a week and take that fifty dollars a month and pay more towards your card debt. If you want to be debt free you must change your spending habits today so by this time next year you will be free of the control of those credit cards.
If you have multiple credit cards it might be time to consolidate them to one card. Many card companies will gladly help you to transfer the debt from other cards. Pick the card with the lowest interest rate or negotiate with one for the lowest possible interest rate. Then you have one bill each month and you can actually see how your efforts will make a difference. If your minimum bill for your new balance is $50, start paying $100 a month. You will chew that debt down much faster and pay less interest in the long run. Start looking for ways to save money each month and pay even more of the debt down each month. You will be surprised if you stick to the plan how excited you will feel when you stop being controlled by your debts and you become in control.
Brought to you by the editorial team from installment loans network, who work daily to help consumers find installment loans and personal loans for a variety of credit scenarios to cover finance emergencies and loan needs that a traditional bank or credit union is unable to cover.
The Title Loans Option
Often times people are hard up for some cash. This may be due to losing a job or being forced to deal with an emergency medical situation. Regardless of the reasoning behind the need for quick cash, title loans are always an option, albeit a very risky one.
Trapping Borrowers Into Perpetual Debt
The main reason that title loans are considered to be quite controversial is that they impose extremely high interest rates upon their borrowers. Often times the interest rate is so high that that only way the borrower can pay off the loan is if they over pay on payments or pay it off in one lump sum. Without overpaying on a high interest title loan you will get stuck in a vicious cycle of only paying off the balance interest every month and never actually putting a dent into the principle itself.
Short Term Title Loans And Auto Repossession
Often times the end result of a high interest short term title loan is the repossession of the vehicle that is being used to secure the loan. With the interest rates being so high and there being little chance of paying down the principle unless you overpay, defaulting on the loan then becomes a major risk. This is especially the case when short term title loans are made available to lower income individuals. With little to no disposable income available to double up on payments the default risk in some cases can be 60% or higher.
Reputable Lenders Will Not Offer Title Loans
Generally, reputable banks and lenders will not offer high interest short term title loans due to the controversial and often shady reputation that these loans entail. Large lending institutions are also subject to far greater third party oversight and regulation and thus there is no way that they could fly under the radar with such predatory lending practices.
Often times small and shady lenders will deliberately structure short term title loans in a manner that almost forces the borrower into default at some point. For example, some short term title loans will require the loan to be paid back in full over a short period of time. If the borrower is not able to pay back the loan within the given time then they forfeit the title of their vehicle and it then will be taken by the lender.
Short term title lenders will usually only lend out a small amount of money compared to the amount of liquidable equity at stake in the automobile that they hold the title to. In the event that a borrow defaults on the loan the lender stands to reap profits that far exceed the amount that they initially loaned out.
When you ask “What Regulations Govern Tribal Payday Lenders Online?” you’re asking a heavy question. In fact, to put this question into the proper context it’s necessary to provide a scenario that allows one to be a bit objective while putting this discussion into perspective.
So let’s say you’re in a financial bind. You’re short of cash, up to your neck in bills and simply waiting for the next payday means nothing because the money is spent before it even gets in your bank account. An extra $2500.00 right now would be a real blessing! Fortunately – low and behold – you see an advertisement on TV praising a online lending company that offers fast cash advances to help people just like you who are feeling the latest economic crunch. You breathe a sigh of relief because this advertisement – typical of online payday lenders – underscores the company’s minimum required repayment plan while completely ignoring the high interest or automatic renewal. More on this in a second.
The Fine Print
The online payday lender in this scenario is actually a tribal lending institution. Depending on which side of the fence you ride this is either a good or a bad thing. But the fine print basically states that tribal payday lenders that coordinate internet payday load “within Indian Country” can claim tribal sovereignty and are basically immune from for state consumer protection laws capping interest rates.
Getting back to the anonymous individual in our pseudo-story, he quickly signs on the dotted line and gets his money but is oblivious to the fact that he is paying an interest rate of over 200%. The tribal payday lender can dictate it’s own terms because of the tribal sovereignty mentioned earlier. And because the lender’s terms include automatic deduction from the individual’s bank account he’ll be paying off this loan for a long, long time.
Protection or Lack of Same
Which brings us back to the original question of “What Regulations Govern Tribal Payday Lenders Online?” and how maybe now you can see that it really is a heavy question that is difficult to dissect. A good example is that In New York and most other states, loans under $25,000 with interest rates exceeding 16% are illegal and rates over 25% are criminal violations.
A counter-justification might go like this: if tribal internet payday lenders were providing services within the perimeters of what constitutes the tribal land and ONLY to its people than possibly you’d have no argument here. But using tribal sovereignty and lending to anyone who is in enough financial straits to hooked — well that’s when everything gets complicated.
For its part the lending tribes have formed an advocacy group called the Native American Financial Services Association “to protect and advocate for Native American sovereign rights and enable tribes to offer responsible online lending products,” which basically calls any action to block unregulated interest rates “a threat to all natives.”