Do you need some quick money fast? If you’re robbing Peter to pay Paul, don’t bother. You don’t create debt to pay debt. It doesn’t work. Never works. Just ask anyone who was refinancing houses to buy houses in the last 10 years. How did that work out? Well it didn’t.
You see, it’s like this, for some reason people think that bankruptcy is bad. But if you’re willing to go to LoanMart and get a Car Title Loan against a car that’s already paid for, you’re already bankrupt and you just don’t know it yet. It bugs me to no end how many people will spend all their savings, then their CDs, then their IRAs to try to keep a home when the home is upside down by half and if somehow they could figure out how to pay the payments long term, they’ll never have any equity in their lifetimes again. Why do it?
You can file a bankruptcy and keep your IRA, keep your 401k, and probably keep most of your savings!
A friend of mine did this in the early 90s, her home had been worth $500K and was down to 250K. She let it go. A while later, she was able to buy another house again. Almost the same model, she picked a house in the same neighborhood for $270K. It was about 2 years later and prices were going back up.
Short time later she met an old friend, he’d been her next door neighbor to the house that she had short sold. Thankfully he’d been able to “save” his house and still owned it. Yes, he’d weathered through the short recession, however, he still had a mortgage of $500K. My friend’s house now had a mortgage $270K.
Car Title Loans
The best thing about a car title loan if you have to get one, you can bankrupt it later if your circumstances don’t improve. Your interest rates will be usurious by any standards and frankly it would serve them right. But there is a problem with it, you’d have to give them the car or make a deal with them to pay the loan off through a Reaffirmation Agreement. Interest rates, principals and length of contract can all be renegotiated at that time, but only if the lender agrees to it. What if they don’t? You lose your car.