Pink Slip Loans Worse Than Payday Loans

A shop window advertising payday loans.
A shop window advertising payday loans. (Photo credit: Wikipedia)

Pink Slip Loans Worse Than Payday Loans

Pink slip loans are a financial last resort in the same vein as payday loans. They work in much the same fashion, offering a borrower a sum of money over a very short span of time at a high interest rate. Unlike payday loans, many pink slip loans do not require a fee. However, this is because they effectively lien the car against the loan. If the loan is not repaid, the car is taken.

This changes the dynamics of the loan significantly. In some ways, this makes them arguably less risky, but as with payday loans, it is best not to chance it and to simply repay the loan as soon as feasible.

Pink slip loans are available online. However, looking for a pink slip loan online requires due diligence. There are several things that you should look for before committing to a loan. The first thing is the reputation of the lender. If you cannot find any information about a lender’s reputation, that should be taken as a major red flag. The next thing to look into is what information they request and how they are prepared to take your car if necessary. Many scam artists style themselves as lenders willing to put a lien on your car when in fact they are simply trawling for account information.

While seeking a pink slip loan necessarily implies a financial crisis, don’t be hasty. Do your research in advance and be careful about who you do business with. You could save yourself an even worse situation.

Factors To Consider When Looking For Phoenix Bankruptcy Lawyers

English: Virginia bankruptcy attorney Robert W...
English: Virginia bankruptcy attorney Robert Weed discusses bankruptcy and foreclosures. (Photo credit: Wikipedia)

Phoenix Bankruptcy Lawyers

When you are no longer able to continue servicing your debts, and the only option seems to be bankruptcy, you need to find Phoenix bankruptcy lawyers who can help you file the necessary paperwork. Depending on your individual financial condition, you can apply for either the chapter 7 or 13 bankruptcy. If you are not sure about which chapter is best suited for your unique circumstance, be sure to ask a bankruptcy attorney for advice.

How Bankruptcy Can Help You

When the court declares you bankrupt, your creditors will not be able to come after you. The threatening emails and notices will stop. A bankruptcy can also help you prevent the bank from repossessing your home if your mortgage is in default. In the chapter 13, all creditors including mortgage companies and credit card firms are repaid according to the court approved repayment plan. As long as you continue making regular payments, you can own the house.

Effects of Bankruptcy

Lenders will report you to credit reference bureaus once you file bankruptcy. This will affect your credit score thereby preventing you from accessing cheap loans from lenders. A poor credit score will also prevent you from renting a house, leasing a car and many other things.

Before you start filling bankruptcy-related forms, you must speak to competent Phoenix bankruptcy lawyers like those working for Frutkin Law Firm or Thomas Law Office. These professionals can help you to make an informed decision.