My credit score is not very good and I am trying to get a loan to pay off some of my debt. I was wondering if anyone has ever used something like this and what kind of experience they had. Thanks for the help!!
2007-03-27 03:22:21 · 7 answers · asked by Melissa B 1 in Business & Finance ➔ Other - Business & Finance
Please!!!! for the love of GOD; don't do it!!! it will be one of the biggest mistakes of your life. Below is a letter that I wrote to a local news anchor, requesting help: Hello,
My name is xxxxxxxxxx; I live in Columbia, SC. and although this is my first time doing this. I feel the need to ask. Have you guys done any research about the current situation with the Title Loan Companies in Columbia?. I don't know if you're aware, or not, but these Title Loan Companies are ripping people off. They're charging interest up to 360% and giving astronomical late fees. Making it impossible for anyone to repay these loans. Unfortunately, I'm one of those people, and I need some help. I received a notice to cure default from "xxxxxxx xxxxxxx TITLE LOANS". According to the letter, my last date for payment is 10/09/2006. In the body of the letter it states that if I make my payment by that date "you may continue with the contract as though you were not late". Well, I called them and explained that I will be coming in on Friday 10/06/2006 with my payment of $214.00. They said that I had to pay $375.00 for late fees. That's almost $161.00 worth of late charge. This is ludricous!! they are not allowing me to make my regular payment and said that they do not take partial payments. These people are getting away with this, and nobody is doing anything about it. I'm at a lost, please help me!. I know of many people in my same situation.
Needless, to say I paid $3998.00 for an $800.00 loan and still when I got tired of paying them, I stopped payment and they repossessed my car. When you make a payment that payment is not applied towards your loan, it's applied towards the principal of the loan. That's how they make their money...so with that being said. I beg you please don't put yourself in that predicament. Think about it! ni ni :-(
2007-03-27 03:56:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
1
2016-09-26 17:20:47 · answer #2 · answered by Willene 3 · 0⤊ 0⤋
I haven't personally, but a friend of mine did and I'll tell you, the interest rates are so incredibly high that it causes a whole other set of problems in itself. My friend borrowed $1500 against their car at a title loan place. The monthly payment to the loan place was $300.00 a month, BUT, this was just to cover the interest to the loan. You could pay them $300 a month indefinitely and never ever have any of that go towards the balance and if you miss or are late with a payment, they can come take your car. It's part of the deal.
My friend ended up borrowing money from other friends to get rid of the $1500 car loan because after 9 months he had paid them $2400 and still owed the initial $1500 on top of that.
Find out if there's a way to work with your creditors to pay them the money. A lot of places will work out payment plans with you. If your credit already isn't very good, it's probably not going to get a whole lot worse. Don't risk losing your car in addition to that.
2007-03-27 03:37:40 · answer #3 · answered by Jessica S 3 · 0⤊ 0⤋
I almost did and stopped to do the research and i'm so glad i didn't!!! It's a scam and alot of states now have closed these loan companies down because the interest is so high and after you make your payments there is all of a sudden another fee to close the loan ranging from 1-2 thousand dollars and its not in the contract but they get away with it.
just don't do it!!! Good Luck!!! By the way if you call the creditor that you owe money to and make a payment plan they usually will do it and even reduce the amount, and that looks better for your credit making payments each month than just paying it off all at once. It shows that you can be trusted and are responsible every month than just one month. trust me i had crap credit and got my score way up!!!
2007-03-27 03:34:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Hope this helps!
2016-06-30 01:10:52 · answer #5 · answered by ? 5 · 0⤊ 0⤋
they r just like payday loans. not good! its better to suffer than to take their loan for a quick fix. dont do it! u think sumthin will come together and u will be able to pay them off quickly without a scratch, but in life, sumthin always comes up.
2007-03-27 03:33:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋
They dont give you very much at all and the interest rate is very high. Also, one day late and they will take your car! I would not do it again!
2007-03-27 03:31:16 · answer #7 · answered by Hot Momma 4 · 0⤊ 0⤋
I'm sure that SOMEONE has...
2007-03-29 04:55:13 · answer #8 · answered by bpgveg14 5 · 0⤊ 0⤋