We all are very much familiar about loans because we live in a society that is divided based on the earning status of the people. In fact most of the population falls either into the low earning “lower middle class” category or “the middle class” category and to your surprise both these sections of the society struggles a lot in keeping their finances intact. Both these classes are also the ones that opt for most types of loans be it a personal loan, house loan, vacation loan, education loan, medical loan, auto title loan and many more to mention here.
People of both “lower middle class” and “middle class” always find it hard to maintain their bill dues and premiums because there are many factors that affect the earnings every month. So when the earnings start to fall short against the expenses then the problem start to get a bit tricky. Not all of us are “super money saver” type and that is where things start to go the wrong way. People who don’t save tend to find themselves in deep debt and that is when they think of taking a loan to clear all the debts.
But is getting a loan very easy? Well it isn’t and we all know about it. Banks and traditional institutes don’t sanction a loan until they are satisfied that the borrower has the capacity to repay the loan amount back or has the asset to keep as collateral to recover the loan amount if he/she fails in repaying the loan amount. Banks and traditional financial institutes are so widespread that people think there are no other alternatives beside them. But this is completely a misconception because there are many mediums like the auto title loans which break the shackles of loan definition of being very complicated.