A title loan is a way to borrow money on your automobile title. When you get a title loan you receive money on your automobile. If you have a clear title in your name, you are eligible for a title loan. After the principal and the interest are paid you will receive your title. This is similar to a home equity loan, except the amount of the loan is generally much smaller. Another downside to title loans is they can be done through less reputable companies, such as quick pawn shops.

     Again, borrowing against your title is not the best idea. You do not actually hold the title to your car when you get a title loan. Not only will you have to pay for the principle plus interest to get your title back, you will lose your car if you default on the loan. Debt consolidation will help pay your bills without giving away the title to your car. It is a safer option that helps pay off your current debt without creating another debt.
 
 
 
 
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