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Chapter 9

  • Loan To Own
  • You Will Know
  • Lending Terms
  • The Four Cs
  • Annual Percentage Rate (APR) Table
  • Car Loans vs. Leases
  • Obtaining a Car Loan
  • Title Loans
  • Unsecured installment Loan Benefits
  • Relationships Are Important

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    Title Loans





    Example: Michael had $500 in unexpected medical expenses and needed a loan.



  • A finance company loaned Michael $500 at 20% interest per month.
  • At the end of the month Michael owed $600 ($500 loan + $100 interest).
  • Michael could not repay the loan at the end of the month, so he paid the lender $100 in interest.
  • At the end of the next month, Michael still owed $600 ($500 loan + another $100 in interest).
  • Michael did this for a year and paid $1,200 in interest, which equated to 240% APR.
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