Arizona title loan stands as a riskfree option

The lenders cite default rates and also imply that these are pretty unfair to the consumers.

Dublin, OH (prHWY.com) June 6, 2012 - Some says it's risky, some says these are dangerous! As a matter of fact, common perception among consumers regarding Arizona title loan is that - these are unsafe. Well, the lenders cite default rates and also imply that these are pretty unfair to the consumers. Hence the question hangs - are these lifesaver? Or are these dangerous? Are they right, at all?

Let's face the fact - risk of default is there. However, with almost any kind of loan there is a risk of default. For the uninitiated, this means that the loan repayment amount is not paid back properly. Now, let's concentrate on the risk of default in case of the Phoenix car title loan. Let's concentrate on figures. As per the Cato Institute, the default rate for vehicle loans is 14 to 17 percent. Yes, I agree, that's a bit on the higher side than the norm for the traditional loans. However, when you weigh down this with other alternative types of loans, you would able to understand that this is well within the norm.

Figures never lie. Ponder on the default rates for various types of alternative loans:

Loan Type Default Rate
Payday Loan 10-20%*
Pawn Shop Loan 13.9-30.2%**
Car Title Loan 14-17%

(Source: Wikipedia)

Well, it's indeed obvious that the default rate on Title loan near phoenix area is competitive enough with that of other similar types of loans.

Risk of Repossession is there indeed. Basically in case of the Phoenix car title loan, your vehicle is pledged as the collateral. Yes, there is always a chance that it would be repossessed.

Although one might assume that loan customers typically ends up with having their vehicles repossessed, however that's NOT EVEN close to the truth. As per the Cato Institute the repossession rate is 4 to 8 percent. Well, this means that you will have a 92 to 96 percent chance of keeping your vehicle. Do you still think that the risk of repossession is looming large with title loan in phoenix?

Some even considers that the risk of not paying of bills stand as another risk factor. Well, that's again common with almost any kind of loans. The point I want to make here is simple - there is indeed a slim chance that you would default and an even smaller chance that you would lose your vehicle.

However, if you are facing a utility cut-off or another serious problem, there is a 100 percent chance that the situation won't get any better if you don't pay your bill. Yes, it is after all up to you whether or not the Title loan near phoenix is too risky!

For more details please visit at: http://www.phoenixcartitle.com

This content has been taken from: http://www.ideamarketers.com/?articleid=3296031&CFID=185816322&CFTOKEN=56932713

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Tag Words: title loan near phoenix, phoenix car title loan, arizona title loan

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