It's Monday and you're desperate. You don't get paid until Friday and you have to pay your electric bill by tomorrow or your electricity will be shut off. Your credit is bad and you can't get a loan or borrow money from your friends or family. What do you do?

If you own your own automobile you can easily obtain an auto title loan from many lenders nationwide.

Lenders who offer title loans target the subprime market as well as low income consumers who need cash in a crunch. Many low income consumers live paycheck-to-paycheck and any unexpected bill or rise in prices can create a short-term financial nightmare. Title loans can temporarily help consumers get back on track but can create a larger financial crisis for anyone who can't pay off the loan on time.

Any consumers who default on a title loan may have their automobiles repossessed in short order. For anyone who relies on an automobile to go back and forth to work, losing a car could mean losing a job. From there the consequences can snowball very quickly with the loss of a home and financial ruin possibly looming on the horizon.

If you're considering taking out a title loan you need to be aware of the potential consequences of defaulting on the loan. Would going a few days without electricity be a better alternative to even the possibility of losing your car?

Whether a title loan is a useful tool or a risky proposition will greatly depend on your individual circumstances and your ability to repay the loan in a timely fashion. The choices you make could have a lasting impact on your financial future.