The simplest way to avoid having your car repossessed because of a title loan is to keep making payments on time. Be sure you understand your state’s laws surround repossession, as they vary from state to state. You’ll also want to know the details of your loan. If the lender must give you a final notice to repay, you’ll know that is the last opportunity you have to pay it off. You’ll also need to know if you can do things like roll the balance of your loan into a new one.
There are a number of other strategies that people use to try and avoid paying off a title loan, other than just making payments, but these come with their own problems.
What are some ways I can pay off my title loan?
If you are having trouble paying your title loan back, you should speak to your lender immediately. You may be able to renegotiate the terms of your loan and extend your repayment time. You can also try to refinance your loan with another lender. If you do this, they will try and give you a new loan with their company, usually with better interest. Even if you do that, it may be difficult to come up with the money every month to pay your loan. If you need to make some extra money, you can try things like:
- Getting a part-time job – If you work ten hours a week at $10 an hour, that’s nearly $300 a month after taxes.
- Borrowing from friends and family – Depending on the amount of the loan, they may be willing to give you the money for little or no interest. Just be sure you have a strategy in place to pay them back.
- Sell things lying around your house – If you’re like most people, you have a number of useful items around your house that you just don’t need. You can put these things on Ebay or Craigslist and turn them into cash. After all, one person’s trash is another person’s treasure.
- Cut costs wherever you can – Do you buy coffee out most days? What about your lunch? If you make your lunch and coffee at home, you may be able to save up to $300 a month. Do you subscribe to multiple streaming services? You can save money by cancelling them.
You can use a title loan to pay for an unexpected expense in an emergency. If you do, make sure you have a way to repay the loan. Otherwise you may find yourself facing a repossession of your car. While there are a number of strategies people use to try to get out of paying for their loan, the best thing to do is usually to try and pay it off. If necessary, you can do something like get a part-time job to help cover the cost.