Question

Consumers have a number of options when obtaining a loan. Financial institutions range from banks to payday lenders, and

loans range from long to short term. One type of short-term loan is called a title pawn loan. Which statement BEST describes why
these types of loans should be avoided if possible?

Answer 1

A vehicle title must be provided in exchange for a loan, and people can potentially lose thier vehicles if loans are not paid back.

Step-by-step explanation:

Answer 2

A “vehicle title” must be provided in “exchange for a loan”, and people can lose their “vehicles” if loans are not paid in return.

Explanation:

A conveyance designation must be provided in exchange for an imprest, and people can potentially lose their conveyances if loans are not paid back. If you start missing the monthly payments of your loan i.e., to stop paying the installments of your loan and continue doing that, then you end up losing the vehicle. The vehicle title becomes the failure to repay the loan on time accordance to the terms agreed while building the contract.