One in five has lost their car to fulfill their title loan. Title loans are high-cost, short-term loans financed on the securement of a vehicle the borrower owns. This loan, along with payday loans, is used by those who have been shut out from mainstream financial institutions.
The fragility it carries is crucial and delicate, with an interest rate of 300% on an annual percentage rate. The loan predators have a tendency of not to include severe information to trap the borrowers get possession of their vehicles. Although numerous charities have come together to provide finance with low-interest rates to help people get rid of their title loans and get a full charge of their assets.
Here are 6 Best Charities that help with Title Loans:
Having their mission and beliefs aligned in the name of God, CCNK was founded to provide services to the needy with extreme compassion and devotion. Their Kansas Loan Pool Project has soundly assisted individuals in paying off their title loans.
Opposing the alleviated high-interest title loan debt, they offer legitimate loans through a partnership with Sunflower Bank at equitable interest rates. They have expertise in creating personalized financial paths to help clients get rid of their existing predatory loan debt. Charity Navigator scores them 82%.
Their idea of bringing people closer by advancing the common good has helped the communities build a strong foundation. Since 2017 they have relieved a total debt of more than $532,418,300. It is the most rewarding charity that aims to help as many people as it can with its app.
Apart from helping the clients get rid of their title loans with low-interest rates, they have a team of lawyers who meet the demands of low-income families. With the combination of providing advocacy and raising awareness for fundamental human rights, they are vigorously fighting the unjust system.
CGF is a nonprofit charity or, in other terms, a community development financial institution built to offer loans with adjustable terms. Along with providing low-interest rates for paying off debts, they focus on uplifting and empowering marginalized groups. It has made over 5900 loans in the last 11 years, amounting to about $12.3 million.
More uniform regulations ensure that the borrower can independently repay the structured loan. They uniformly and equitably spread the costs. Since the typical consumers struggle to pay the loans, they work to illuminate and improve the solutions for the title loans with adequate information about the market trends and legal laws. Charity Navigator evaluates them with an impressive 100% score.
5. Lend a Hand
This program was a collaborative teamwork between the Arizona Community Foundation, MariSol Federal Credit Union, the Phoenix IDA and Take Charge America. This initiative was to help individuals pay off their loans to avoid losing their cars and go into further debt.
After reviewing and application form and meeting the eligibility criteria, Take Charge America schedules a credit counselling session to develop an action plan to further eliminate the risk and debt.
MariSol allows grants of up to $2,000 and aids borrowers by creating a savings account for future emergencies. Lend a Hand is a zero fees program where the approved borrowers enjoy the benefit of credit unions and their stability.
Mini Loan Program was set with a mission to empower individuals and help them find their financial stability based on their skills. MLP converts short-term loans into long-term and low-interest loans.
They support people with their financial coaching and budget planning within the amount of $4,000. Since they do not assist in paying off the car payments, they ensure that the loans they offer do not cause one to lose their vehicle or cause any extra mental exertion.
The almost shatterproof series of debt traps have been successfully smashed by the long working hours of charities and their successful programs. Tax cuts have majorly contributed to the mismanagement of finances, leading to subsequent deterioration.
Even with a conversion of short-term loan into long-term loans, charities have greatly helped thousands get out of the predatory debt trap and plan their finances better to avoid any such shortfalls in their future.