Title Loan

A short-term loan in which you use the title to your car or whatever as collateral. If you can't pay the loan, the repo man comes and takes the car away.

Title loans are fast and easy. If you own your car outright and it's worth $15k or so (you have no debt on it) then getting a quick 3 grand, pledging it as collateral is easy (but the people who grant those loans will perceive you as being a high-risk borrower, so the interest rates will be...high).

Bottom line: if you don't absolutely need one of these, don't get one.

Related or Semi-related Video

Finance: What is a trust deed?3 Views

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Finance allah shmoop What is a trust deed here This

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is okay So that's more of a trust fall A

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trust deed is a kind of how to build it

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kitt which instead of describing the construction of ah balsa

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wood airplane describes how assets should be owned cared for

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managed and eventually disposed of two the beneficiary or whoever

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bought him in the first place or who were involved

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in the model airplane build from the beginning What does

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that mean Well a trustee lays out the rights and

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obligations of the bank underwriting the purchase of whatever inventory

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is involved here In this trust deed it lays out

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the rights of the people transacting and it spells out

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who gets called defend or when there is a conflict

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And this is particularly useful in a world where there

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is indeed not a lot of trust Essentially a business

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owner is just holding merchandise that was bought by the

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bank like eighteen miles of denim fabric with intentional rips

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and tears in it You know those things as the

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business owner stitches together hundreds than thousands of sets of

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genes which they then sell into the fashion market places

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In new york and milan the bank via their trust

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deed owns that merchandise until the business owner essentially buys

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them out of it or pays back the loan amount

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committed when the merge was initially bought The trusty it'sjust

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the legal documentation that outlines the various obligations of both

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parties i'ii think of it as a contract light Why

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would you want one of these arrangements If you're a

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business owner Like why bother with all this trust deed

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stuff and inventory and banks Well if you didn't have

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tohave one well you wouldn't But if you're a fledgling

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company hoping to make it big in the big city

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and you need lots of inventory to make lots of

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genes or nobody takes you seriously well then you do

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what you have to dio and you can imagine that

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banks charge very high interest for setting up the's trust

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deeds because the credit risk they take here is usually

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reasonably very high like the levi stitching company just vanishes

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one night or was in fact a meth lab using

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the denim as a mano a filtration process and the

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mexican mafia comes in one night ending and this little

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companies Entrepreneurial activities Well another reason banks charge high interest

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is because the last thing they want tohave to dio

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is repossess eighteen miles of denim and then try to

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get their money back by selling that eighteen miles of

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denim on ebay So as a result not only do

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trusted borrowers pay high interest but they also have to

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carry relatively expensive insurance on that inventory So that at

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the end of the day the on the bank isn't

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left high and dry Or at least you know just 00:02:44.81 --> [endTime] dry

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