Want a new car?  Think you can finance 100% of the price and still haggle for the best interest rate and term?  According to a recent Wall Street Journal article, buyers aren’t in the the driver’s seat anymore.  In fact if you don’t have a credit score of 700 or higher, you probably won’t even get to hold the keys or sit in the backseat.

The “new car” dream is gone.  You’re wallet’s still empty and you’re starting to wonder if perhaps you’ve been a bit harsh calling the car you own an “old clunker.”  It’s paid for, and with some quick cash from Alabama Title Loans that old clunker has real potential.  You could even hang a car deodorizer from the rearview mirror for that new car smell that haunts your dreams.

How do title loans work?  Online, you can start at New Hampshire Title Loan, South Carolina Title Loan, Texas Title Loan, or find a local store.  You determine the amount of money you need, agree on repayment terms, bring your car in for inspection, show identification, proof of ownership and insurance coverage, and for the most part you’re out the door in no time.

 It’s easy to get caught up in the rush of quick-cash, no credit check, and money in your pocket, but remember it’s your car on the line if you miss payments.  Be cautious.  Borrow for necessities.  A title loan isn’t a solution to continually spending more money than you make.  It’s just one way to fill up your wallet until you can make the changes you need to get back on track.

Every year I procrastinate until the very last minute before buying Christmas presents.  Usually my shopping list is complete before Thanksgiving dinner is cleared from the table.  The reason I can’t get my act together is I always think I can get a better deal or discount if I look at one more Website or store.

It never really works, and I end up in a panic the week before Christmas — short on cash and paying ridiculous shipping charges to make up for waiting so long.  Last year I was short on cash and time.  I was able to use a quick payday loan to get what I needed for my in-store purchases. 

My online, triple-shipping charge purchases were a different story.  I was shocked when my Visa bill arrived.  It’s amazing how fast small purchases can accumulate into thousands.  I pay my Visa off every month, and don’t want to get into “just this one time” balance rollover, so I used the equity in my car to get the cash I needed. 

The title loan was a lifesaver.  I applied for the loan on Monday morning, and by Tuesday a customer service rep was checking the condition of my car and handing me a check.  No credit check at all — I showed him proof of income and my photo identification, gave him the clear car title and that was it.  Easy and fast. 

This year my Christmas shopping is 90% complete, and it’s only December 8th.

In a recent Reuters article banking analyst Meredith Whitney said the U.S. credit-card industry may pull back more than $2 trillion of lines during the next 18 months.  She discussed regulatory changes which may lead to declines in consumer spending. 

This is from the story:

Whitney suggested amending the proposal on Unfair and Deceptive Lending Practices that is set to be adopted in 2010, saying restricting lenders’ ability to reprice an unsecured loan will cause them to stop lending or to lend less.

So it looks like title loans, payday loans and loans from friends and family may outpace conventional lending very soon.  If you’re one of the many people in the community considering alternative lending options, be sure you’re dealing with reputable companies.  Lending practices vary widely and even though a pink slip loan or payday loan is known for providing quick cash, slow down and read your contract before signing on the dotted line.

Auto title loans are a great way to help when you’re short on cash, but it’s important to remember that an automobile title loan uses the equity in your car to guarantee the loan.  If you’re not sure about using pink slip loans to help you with your current financial situation, here are a few things to consider before you sign on the dotted line.

Remember to include interest charges – you’ll be required to pay back the amount you borrowed when you took out the auto pawn loan plus the finance charge listed in your contract.   When you forget the interest charges and find yourself rolling over the loan, things can get out of control quickly. 

Have a plan – When you take out a cash loan using your car title there’s more on the line than just your credit history or good name.  Be realistic when borrowing money guaranteed by your automobile title.  Just like a payday advance, car title loans are intended to be a short-term fix – not a long term solution to your cash shortage.  Only borrow an amount you know you can repay on time.

Understand your loan contract – sure the application process is quick and easy and bad credit won’t prevent you from getting a loan, that’s why you’re paying more than you would at a traditional bank.  Take your time. Review the repayment terms, fees, and interest charges.  Ask questions before signing.

Know what will happen if you default on your title loan – Don’t be fooled into thinking you can keep rolling over your title loan without worrying about payments.  The day will come when you need to close out the loan, and if you don’t have the money you’ll lose your car.  The same way a bank can repossess your car a title lender can, and will, take your car to pay off your loan.