Finally, the millennial generation is now neatly categorized. According to Pew Research, anyone born between the years 1981 to 1996 is considered a millennial. Anyone born after the year 1996 is part of the new generation or iGeneration. Once upon a time, Millennials were deemed as one of the luckiest generations to have been born in decades. The First World War was confined to history books, the Second World War and the subsequent baby boomer generation instilled great values in our society, the Vietnam War was over, the Cold War was beyond its peak and the generation x was reasonably thriving during the recovery led by President Ronald Reagan.
No one had predicted then that the millennial generation, the largest group in the history of America, would be the unluckiest one. The generation did not realize the recession leading up to their birth and they were exposed to an unprecedented boom through the nineties. It was not just the dot com era or the advent of technology into every aspect of our lives, everything from housing to finance, media to entertainment, sports to politics underwent a tectonic evolution. The millennial generation went on with their studies and became the most educated generation in the history of the United States. Then they were struck with the aftermath of 9/11 and the devastating recession of 2008/09.
Today, the millennial generation doesn’t have enough jobs. The jobs that are there pay little. They have student loans that are yet to be repaid. Many industries are yet to recover. Baby boomers are increasingly putting off their retirement because of the economic crisis. Many jobs have been shipped overseas and many have been lost to automation. What is the millennial generation to do, despite degrees and the aspiration to do well?
Most millennials have debt, if not student loans then credit card debt. Those who had bought homes have failed on their mortgage payments and others have put off their dream to own a house and to start a family till such time the economy recovers and is stable. Such dire situations call for scrutiny and every move one makes to manage their debt can have significant consequences. Many millennials have opted for payday loans and other unsecured loans with staggeringly high rates of interest to manage their debt. They are clearly not the best solutions. Title loans are a much better proposition than unsecured loans with skyrocketing rates of interest.
Millennials in debt should not opt for loans that will increase their expenses exorbitantly. Imagine a payday loan that charges 25% or even 35%. If someone borrows a thousand dollars, then one has to pay two fifty or even five hundred more in a span of thirty days. This is outright impractical and it may propel a borrower to another debt. The best way to manage an existing debt is to opt for a safe and reasonable way to repay it without hampering the present financial status quo. Title loans are licensed and regulated. They are secured loans with reasonable rates of interest.
There are federal laws and state laws regulating title loans. For example, Texas has a state law that mandates every licensed lender to cap the rate of interest at 10%. No lender can charge more than 10% interest on title loans in the state. If a company charges more, then the lender is either not licensed or practicing a policy that is illegal. Millennials can take legal action against such lenders. 10% is a reasonable rate, especially compared to the 30% or even 40% and higher that is charged by some payday lenders.
As stated on https://titlelo.com/texas/ , borrowers usually have thirty days to repay a title loan in Texas but they can extend the repayment term for a maximum of five times. Hence, if you fail to repay the loan in the first thirty days, you can ask for an extension of another thirty days and stretch the period up to a hundred and eighty days. This will obviously incur some additional interest but you will continue to use your vehicle, it will not be seized by the lender and you would not be compelled to get into a bad debt that keeps becoming unmanageable. When anyone is already in a debt, finding a lenient available loan with flexible terms and a reasonable rate of interest becomes the only criterion.