“Making loans and fighting poverty are normally two of the least glamorous pursuits around, but put the two together and you have an economic innovation that has become not just popular but downright chic. The innovation – microfinance – involves making small loans to poor entrepreneurs”. – James Surowiecki
Have you unexpectedly landed in a financial crisis? Before you start beating yourself up about the fact that you are in a financial mess, it is relevant to note that anyone can end up in a similar situation. It is far more important to troubleshoot ways to work yourself out of this position.
By way of explaining part of the reason for your financial crisis, it is important to take cognisance of the fact that the world is working itself out of a financial crisis. Individual countries such as the USA are theoretically out of the 2008 Recession; however, the average global citizen is still feeling the aftereffects of this downturn.
Troubleshooting your financial crisis
It’s important not to use the financial downturn as an excuse not to work your way out of your money shortage. I am not sure whether cost of living will ever come down again; therefore, it is imperative that you not just look at how to solve your challenges in the short-term. Rather you should rather look at drawing up medium- to long-term strategies which will allow you to generate extra income so that you do not end up in a similar crisis ever again.
A word of warning: It is easy to take out a short-term loan to sort out your immediate cash shortages. However, micro loans typically have very high interest rates, and if you do not find a more permanent solution to your cash flow crisis, you will only end up making your situation worse.
Car Title Loans: A way out!
I do believe that applying for a microloan to help you generate extra cash is a good idea. Yes, as noted above, this loan will have a high interest rate. However, if you are careful, you will be able to utilise the loan to set up a small business, you should be able to earn enough money to pay back the initial loan amount plus the interest charged on top of the loan, and your small business will be able to continue turning over.
What are car title loans Long Beach?
In a nutshell, they are short-term micro loans which require the car title deed of a paid-up vehicle as collateral for the loan. In other words, if you cannot pay back the loan amount plus the accrued interest, the loan financier will take over the ownership of your car instead of the loan.
In summary, this article has highlighted the advantages and cautions when considering a car title loan to help you out of your financial crisis. On a personal level, I believe it is a good idea to look at microcredit as part of the solution to your financial crisis. However, it cannot be emphasised enough that this cannot be the only solution!