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Why People Fall Into Debt

DebtConsumer debt in the United States continues to grow and is now approaching $3.4 trillion as of May 2015. The average person, including children, owes roughly $10,200 in some form of debt. Most of that debt is in the form of auto loans, student loans, and credit card payments. With so much existing debt and the numbers only getting higher, is there any way to reverse the trend? Possibly, but first we must examine why it is that people fall into debt.

 

  • Cars – When your neighbors start driving the latest luxury SUV, you feel like you have to keep up. Spending $70,000 on a vehicle just isn’t in the budget for most people, especially when you can meet the needs of your family with a $25,000 vehicle. When buying a car, buy what you can afford, and avoid what you cannot pay for.
  • Must-have gadgets – The latest phone, tablet, surround sound home theater system, etc. is something that you must have. When the newest iPhone is released, you immediately want to upgrade. The problem is that you cannot afford it. Having the latest gadget is fun and exciting, but it will also be obsolete very soon. Be wise when buying these types of items and only purchase when necessary and when you can afford it.
  • Unnecessary obsessions – Some people just shop and buy things because it makes them feel good. Even if these items are not relatively expensive, continually making these purchases can wreak havoc on a budget.
  • Co-signing loans – Too often, people get roped into co-signing for a loan for a family member or friend. When the friend or family member defaults on the loan, the co-signer is stuck with the debt. While co-signing a loan can produce positive results, be wary of doing so. You could lose a friend or a family member.
  • Renting – There are occasions where renting items would make sense; however, if you cannot afford to buy a TV or some furniture, renting is not the answer. Save the money and buy a television or whatever the item may be.
  • Credit cards – This is no surprise. The average family with one credit card has over $15,000 in debt. A credit card is not a ticket to buy things that you can’t pay for. As a rule, if you do not have the money to pay the credit card bill in full when it is due, do not make the purchase.

 

If people would realize that these are the biggest reasons why people fall into debt, they may be able to change their behaviors and stay out of debt themselves. For those who wish to pay off or consolidate debt, they can look into a car title loan from Embassy Loans, one of the Florida’s leading consumer finance companies.



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.