If you have been living off car title loans for a long time, you might be saying to yourself that it is time to start making some smart saving decisions that will get you more financially secure. Car title loans are useful and convenient. However, like any other loan, you should reserve them for when you have emergencies. If you have more than one car, but have made the habit of living on loans, you will inevitably get more loans which you will be unable to pay back and this could result in repossession.
Every time you commit to loans, for instance car title loans in San Jose, your goal should be to pay off the whole amount by the due date. It is also important to stagger your borrowing so that you don’t borrow every month. This will give you the opportunity to analyze your financial situation since you took your first debt.
Below are some guidelines that will help you to start saving and only reserve car title loans for emergencies:
1. Focus on small savings
When you are constantly paying off loans, you will find it difficult to come up with money to put away. Your focus in such a case should be on making small savings in order to build consistency. Small amounts eventually grow into big amounts, so don’t be shy about depositing small amounts of money into your bank account.
2. Commit to your debt payments
Debts can prevent you from saving money. Do not allow yourself to repay loans for longer than is necessary. When you are taking a car title loan, only take an amount that you will be able to repay at the end of the month. Every time you prolong your repayment by another month, you are only paying more in interest and this will interfere with your plans to save money.
3. Simplify your living expenses
You can restructure your living expenses in order to find some surplus money to save. You might find that by moving into a house in another area, you will pay half your current rent. If this is a viable option for you, make the move and save the extra money.
Start making simple investments that will generate additional income for you. If you invest in shares, for instance, you can expect to earn some share dividends at the end of every financial year. If you are nearing the age of retirement, you should know that car title loans will not support you your entire life. You should invest and save the money from your investments so that you can take care of yourself in the future.
5. Explore new opportunities
Though it might not always seem so obvious, there are always new opportunities to be exploited. If for instance you have been avoiding taking a job because it is out of state, take it if it will lead to increased income. You should exercise a lot of discipline in such situations, however, because with more money, comes the need to spend more.
If you follow the 5 guidelines above, you will save and still be able to make use of car title loans safely.
About The Author
Debby Trombly has been a financial advisor for 10 years. She is based in California and has helped many debtors, including those with car title loans in San Jose, start saving money. Visit her site to learn more.