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About to take a title loan against my car

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Money Talk > Credit & Loans

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Wino
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quote:
Originally posted by LRobTed
... you don't know me at all to say I'm not trying hard enough.


Please go back and show where I said anything of the sort. I stated that folks had suggested many things, and you had shot down everything suggested. That was a fact, not an assumption, accusation, or opinion.

Since you have turned down everything else suggested - for whatever reasons - your only course of action is to eliminate the payday loans one by one. The only way to do that is to let other bills lapse. I suggest you let the medical bills lapse, but that's your call.

And that's what my post said: You need to make a hard decision now, not next month. You're only getting further behind the longer you wait.

edit: I just saw that you're going against all the advice given and getting another payday - now called "title" - loan. Good luck.
Post Tue Jul 16, 2013 7:13 am
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LRobTed
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Tim - why is it the "worst" possible thing to give them my account no? This way they will always get their money, don't you see? I'm sincerely curious why this is not a good idea? What if I move out of the area and can't go down to where they are and physically hand them a check? Or I'm in the hospital --- this is a way for me to guarantee they'll get paid so my car will never be taken away. Pleases explain why this is not a good idea? I was in collections a couple of years ago and
arranged for money to be taken out of my checking acct monthly by them -- it got paid off like clockwork and account was paid off and closed.

Let me know your concerns and I respect your opinion despite the fact that today I'm probably going to do this. Thank you ; )
Post Tue Jul 16, 2013 11:01 am
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coaster
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quote:
Originally posted by LRobTed
I'm sincerely curious why this is not a good idea?

Because anyone with your bank routing number and your bank account number can initiate an Electronic Fund Transfer on your account for any amount and the bank has to honor it by debiting your account. This is known as a "pull" because it pulls funds out of your account and your bank has no authority to either authorize it or to block it, and should your account be debited for an amount that exceeds your balance the bank even has to transfer that amount and hit you with an overdraft. You have no protection to get your money back from an unauthorized debit other than the bank's own policies and procedures and goodwill.

Why can't you pay them like you'd pay any other bill....with a check you send in the mail?

~Tim~
Post Tue Jul 16, 2013 3:54 pm
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coaster
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LRobTed, you asked us to wish you luck. I'm really sorry; I can't do this. A sincere wish of good luck is like a tacit approval. For someone who's willing to stand and face the lions and battle them off I would sincerely wish all the luck in the world, but for someone who would rather avoid the lions by knowingly and willingly stepping off the edge of the cliff; well, I just can't wish good luck for making that decision. My hope and my wish is that things work out for you, but my honest belief is that you're just going to end up deeper in trouble, and wishing good luck for the decision that leads to that would conflict with my hopes and wishes. Sorry. Embarassed

~Tim~


Last edited by coaster on Tue Jul 16, 2013 4:35 pm; edited 1 time in total
Post Tue Jul 16, 2013 4:03 pm
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coaster
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OK, so paying with a check sent in the mail is a bad idea. They'll sit on the check and then claim it wasn't received in time, putting you in default. You would have to send every payment certified mail. At least do this: open an account at another bank, set up an automatic transfer from the bank where your check is deposited to the second bank, and use that second account for your loan payment.

~Tim~
Post Tue Jul 16, 2013 4:11 pm
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LRobTed
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Tim - thanks for that "opening a separate account" for loan payment idea, I will do that for sure. I"ve always wondered how is it so easy for a company (any) company to just pull funds from your account without the bank getting your approval on it first??? It gives me pause now that I think about it. When that collection company took out $100 every month, the bank never asked me if this was ok to do - it could have been a phoney company. Fortunately, they've never abused it but one never knows.

I'm also concerned about my social security "security". Do you know that at all FIVE payday loan places they have my "Letter of confirmation" from social security with my amount I get and when I get it? I had to hand over a copy to them as it shows my income (my only income). But I'm wondering how easy it is for someone to hack into your social security??? I know anytime I've called Social Security for reasons they really put you through the paces to try to make sure of your identity but still??? I'm know I'm off topic here, so apologies.

I promised my spouse that I would not get a title loan with this car. He mad me promise. That is what is bothering me most, going against my promise to him. Also he casually mentioned that "he could find out" if I got a loan. Can anybody call the DMV to see if there is a lien against anybody's car title?? That is the only way he could find out. He has all my infor (VIN no., etc).

I have come to this forum for advice and I've gotten so much good information here. I hope I'm doing the right thing. Thank you so very very much.
Post Tue Jul 16, 2013 4:36 pm
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oldguy
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quote:
I promised my spouse that I would not get a title loan with this car. He mad me promise. That is what is bothering me most, going against my promise to him.


If he already knows that you are considering a title loan - and he asked you not to do it - then why don't you ask him to lend you $1500 for 5 months? That sounds about 10 times smarter than paying $4300 to borrow $2500 when you only need $1500. Wow, that sounds dumber everytime I type it. lol. (And before you start your rant - "no, I don't know you" - "no, I haven 't walked a mile in your shoes" - and so on).
Post Tue Jul 16, 2013 5:55 pm
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LRobTed
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Old Guy: My "other half" does not have $1500 to lend me. Otherwise I guess I would ask him but not sure I want him to know how dire straits I'm in although he does have hints. The car that I'm talking about is outright owned by "me" and "me" only so I think I should be able to do what I want with it.

I know this is desperate; the stress of owing all these people is going to give me a heart attack. If it comes to paying out $2K over what I borrow compared to dying from this stress, then so be it. Also I understand if I pay the monthly amount off more, let's say I pay them $400 or $450, I pay it off sooner and the payoff amount won't be quite so high. Thanks ; )
Post Tue Jul 16, 2013 6:15 pm
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littleroc02us
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quote:
Originally posted by LRobTed
I'm retired (I would "work" but part-time jobs are NOT going to 63 yr old people in my area, the younger people get hired first) but I am always looking. If I could land a job for $9-10 an hour for four hours a day would help me financially (and mentally, I'm bored out of my mind with retirement and I have no money to travel, buy things..etc.)



I just went back to what you said in this post. You said that younger people get hired first. That is just a lame excuse. Not when you own your own business. Businesses don't care what age you are. I just started up my own handyman business because I need the savings to buy my first flip. Why not start a lawn mowing sevice and place ads on people's doors, or offer to paint their home, or some other skill you have. Working for someone else won't get you the same income your looking for to pay off these payday loans. The only way I know how to get money is to work.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Tue Jul 16, 2013 7:53 pm
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coaster
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LRobTed, I think that what this really boils down to is the battle that's going on in your own head. You mentioned the stress from paying the payday people; going against your promise not to do the title loan; etc. This is an entirely internal thing. What goes on in your own head is the only thing you have control over. You can't control external events, but you can control how you think about them; and controlling how you think about them guides how you react to them.

I think that very likely you're not presently in control of your thoughts, perhaps because it's never occurred that thoughts are something you can control, and your thoughts are driving you to make poor decisions based on faulty thinking. Once you realize that your thoughts are just your thoughts, that they belong to you and you alone, and that you can control them, and get rid of them when you don't want them, then they won't rule over your decision-making process.

And how do you control your thoughts? When a disturbing thought occurs, you just stop thinking that thought. You just stop. You can think about something else. It takes practice and it takes self-awareness. You have to look at what you're thinking from a point outside of yourself. Examine that thought. Look at it, pay attention to it. If it's a thought that you don't want to have, then tell it to get lost. Stop thinking it. Think about something else. Thoughts don't stay where they're not wanted.

It is the thoughts that are creating the stress and the conflict; not the external events. Changing the thoughts changes how you react to the external events.

Think about it.....

~Tim~
Post Tue Jul 16, 2013 8:58 pm
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LRobTed
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Well, it's done. I'm locked into $400 a month for a year but there is no payoff penalty and I'm hoping to get this paid down in six months. Expensive but it is my car and I did what I had to do. Thanks for your help everybody...getting a part time job would really expedite getting this thing paid off!! Will keep looking!
Post Wed Jul 17, 2013 1:52 am
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coaster
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$400 a month, for a year, eh? No payoff penalty? It was $360 a month, for a year, a couple days ago?

Sigh ....

You realize you ... prepaid ... the "payoff penalty" ???

I think I gotta go have a coupla really, really stiff ones

~Tim~
Post Wed Jul 17, 2013 4:15 am
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LRobTed
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Well, the rate went up because I don't start the first payment until Aug 30. Honestly, I'm very poor with numbers and math and I was so desperate to "breathe". Even if I pay them $100 extra each month it will draw the payoff period down a bit closer than a year. I know that if I miss 10 days not paying them the contract says they have the legal right to repossess my car. And I can't let that happen. It was hard signing over the pink slip. I get it back when I pay this off and can go register it with DMV removing them as lienholder. *sigh* again, thanks for your advice Tim. I can't even tell you how good it feels to get up and see some money in my account. Now I have to act wisely with it and never get into this position again.
Post Wed Jul 17, 2013 1:02 pm
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oldguy
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quote:
I can't even tell you how good it feels to get up and see some money in my account.


That's an odd thing to say. After paying your PayDay loans, you have less than $1000 in your account - the PinkSlip company owns your car - and you owe someone an extra $4800. Yipe! (I know you don't care - but $2500 at $400/m for 12 months is a 141% APR loan - I should get into the Loan Sharking business, lol)
Post Wed Jul 17, 2013 2:53 pm
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LRobTed
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I have had bills past due over six months; I now can pay some towards them. I can now start to rebuild my credit, slowly. I know this sounds absurd and I do think what they charge is absurd but I was a fourth customer standing in line; three others in front of me were doing the exact same thing with their cars. One guy got a $5,000 loan and I don't know what his payments are. If I had gone 24 or 36 months my payment would have been less but I just wanted the incentive to catch up on some bills, "breathe" a bit, not have to run around anymore to all those places, just have "one" place to go every month to pay the car loan. It was not an easy thing to do and lesson learned here.
Post Wed Jul 17, 2013 3:07 pm
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