One of lifeâs most difficult experiences, losing a loved one can be exceedingly difficult. Worse, planning a funeral without savings or insurance coverage can make handling the ensuing responsibilities highly stressful. After all, funeral costs can add up quickly. The average contemporary funeral costs over $8,000, which must usually be paid up front. Having heard about title loans, you may be wondering, âCan I use a title loan to pay for a funeral?â The answer is yes, and all you need to start your application is a vehicle in your name and the income to repay the loan.1 You donât need good credit, and if approved, you can typically have your cash in just one business day.3 Hereâs a closer look at funeral expenses and how you can pay them with an auto title loan.
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What are Title Loans?
Consumers who choose title loans typically need to borrow cash for urgent expenses such as funeral costs, and frequently do not have access to other loan options. With a title loan, you can use your vehicle, registered in your name, as collateral. The car must have sufficient value to support the loan, and youâll need to show proof of income to ensure you can make timely payments. Most lenders require you to be at least 18 years old and live in the state in which youâre applying.1
Depending on the lender and state regulations, you may be able to borrow up to half of the equity you have in your automobile.1 The lender determines the vehicleâs worth based on its make, model, mileage, year and overall condition. Loans serviced by LoanMart donât require an in-person vehicle assessment. Instead, you simply submit clear, current photos of your car as part of your online application, saving you time and money. Loan amounts are flexible, so you can borrow as much or as little as you need within your approved lending range.
You could be approved in less than an hour, and receive your money by the next business day with a title loan serviced by LoanMart.1 3 After funding, the lender places a lien on your vehicleâs title. The cash can then be used to cover the costs of the memorial service for your loved one. Once the loan is paid off, the lien is removed again.
Assessing Funeral Costs
Funeral costs vary widely, depending on the services and arrangements you choose. Expenses usually include funeral home services, cemetery costs and optional extras like flowers and receptions. The costs are usually bundled into packages and can include service fees for planning, paperwork, permits and coordination. You will also encounter charges related to the transfer of remains to the funeral home. Other costs can include flowers, printed materials such as programs, photo boards and guest books. Many celebrations of life events include a video tribute, as well as live-streaming and recording the service. Catered receptions are common, as are rituals such as dove releases.
How to Save Money on the Ceremony
Traditional funerals are no longer the only option. Contemporary services include a range of choices, many of which are considerably more affordable than standard ceremonies. In other words, you may need a smaller funeral loan than you think.
Direct burials, which average around $5,000, entail interment soon after death without embalming, public viewings or formal funeral services. Remains are placed directly into a simple casket or shroud and buried, eliminating many of the costly expenses associated with funerals. Along those same lines, home funerals can lower costs by up to 80% compared to traditional funerals by eliminating preparation fees, facilities charges, caskets, transportation and other professional services.
Direct body cremations average about $2,000, depending on the location and provider. While add-ons, such as urns or ceremonies raise costs, direct body cremation can be 70% to 90% less expensive than traditional funeral services. This can make funeral costs much easier to bear.
Planning Ahead to Pay for Your Funeral
Planning ahead avoids saddling loved ones with expenses - and decisions - during a difficult time. It also allows you to choose your options. Whatâs more, paying in advance will lock in the prices for the services you want, which provides a hedge against inflation. Some funeral homes allow you to pay for this over time - if youâre under the age of 85.
A payable-on-death savings account allows you to designate one or more beneficiaries to receive the funds automatically upon your death, bypassing the probate process. Youâll retain the right to manage, spend or change your designations at any time. Another option is a funeral trust, which allows you to set aside funds in advance to cover your funeral and burial expenses.
You can establish these trusts with funeral homes, cemeteries or financial institutions. Trustees manage the funds until needed, and locking in prices can shield against inflation. Just be certain your arrangement wishes are included among your personal documents.
Alternatives to Title Loans for Funeral Financing
Credit unions often provide emergency loans at lower rates than car title or payday loans. Churches and other nonprofit organizations may also be called upon to provide financial assistance for a funeral. You may need to be a member of the credit union or the church, but itâs always okay to ask. Some funeral homes offer flexible payment plans. Local governments also help with funeral expenses in some cases. For example, low-income residents in New York can receive up to $1,700 from the Human Resources Administration Office of Burial Services to cover funeral costs.
The Department of Veterans Affairs provides burial allowances to help the families of eligible veterans pay for burial and funeral costs. Amounts vary by circumstances, like service-connected death, in which case families can receive up to $2,000.
In times of loss, having access to prompt financial support can help ease your burden so you can focus on what truly matters. Losing a loved one is always tough, and the added strain of financial responsibilities can make an already challenging situation even harder.
Conclusion About Vehicle-Secured Funeral Loans
You can get cash to pay for a burial with a title loan serviced by LoanMart, even with poor credit and no bank account.1 The interest rates are competitive on these loans and their terms are transparent. Whatâs more, there are no penalties for repaying the loans early. You can also continue to use your car, as long as your loan payments are current. Apply today to see how a LoanMart -serviced title loan can help you weather a financial emergency!
