If you are in a financial situation that could be solved if you had an extra week, you may want to consider taking out a title loan. This is a loan in which your car is used as collateral. While many people will advise against these loans, if you use them correctly they can be a huge help and even save you money. So, before you run the risk of losing your vehicle, think about the following.

What Will Happen If You Don't Get the Title Loan? 

If not getting the loan is going to mean someone or an animal suffers from a medical condition or injury, you should get the loan. If you are going to lose your home because of a lack of funds, you should get the loan. However, you should not take the loan for extra money on a vacation, or because something you want to buy is on sale.

These Loans Are Meant to Be Short-Term

A title loan is meant to be a short-term loan. You should be able to pay it off within a month. Make sure you make the payments on time. If you need money for a longer amount of time, you should talk to the lending institution about getting a personal loan with longer terms. While you can refinance the loan, paying only the interest, it is advisable not to do this unless absolutely necessary.

How Much Do You Need?

It is important that you consider how much money you need and only take that much for the loan. While the loan company may offer you more money for your car than what you need, you can tell them you don't want that much. This way, you will not have to pay back more money and interest. Do not tell yourself that you can pay back the larger amount or that you won't spend it unless something comes up. This is where people can get into trouble.

Remember, a title loan is for an emergency situation. Ideally, you need to take one because your payday is too far away from a bill that must be paid now. As soon as you get paid, pay off the title loan. That pay would have gone toward the financial crisis if you had gotten it in time. Only you know the truth about your financial situation, but you must be honest with yourself about it too. A title loan can be a very good option as long as you use it wisely.