How to Lower Your Title Loan Monthly Payment
Car title loans are great go-to solutions for when you need a significant amount of cash for a sudden expense that you are not financially prepared for. After attending to your financial responsibility, the next thing that you need to concentrate on is paying off that loan you just made. Car title loans are usually short-term loans that range from a couple of months to about two years to fully pay off. This is definitely a lot shorter than the usual home mortgage or student loan (which can take many people several years to fully pay off), but will still require some budgeting and planning in order to be taken cared of smoothly and in good time.
To free yourself from the burden of prolonged budgeting, it is suggested that you find ways to lower your title loan monthly payments. Just because you have committed to a predetermined amount for a number of years does not mean you have no other choice but to see it through to completion, no more or no less. The truth is, you can do something about it. In fact, LoanMart absolutely loves and appreciates clients who are proactive enough to lower their monthly payments. Not only does it show they are financially responsible clients, but it may also allow them an opportunity to qualify for an even bigger loan amount in the future, should they need it. Showing that you are determined to meet your obligations will not only allow you to fulfill them properly, but at the same time work in your favor because it puts you in a better light with lending institutions.
Here are several things you can do in order to make your monthly car title loan payments a lot lighter and end earlier:
1. Talk things out with your loan officer. Do not be afraid to call your loan officer to discuss how you can make your monthly loan payments a lot lighter. Just because you have a fee schedule to refer to does not mean there are no other options to consider for your own personal situation. LoanMart is in the business of providing assistance to those who are in need of cash to fulfill a variety of needs, while at the same time striving to make the repayment term as manageable as possible. Requesting your loan officer to problem-solve with you regarding the monthly payment re-computation should yield several other options that will help make the entire task of paying off your loan a lot lighter; they are trained to identify ways that will allow you to better meet monthly loan payments.
2. Use unexpected extra income to speed up the payment term. During the repayment term, you might be lucky enough to come across a little bit of extra income that you can divert towards your monthly loan payments. These little bits of good fortune can come from a variety of sources: a performance bonus at work, an unexpected cash gift from your doting grandparents, a cash dividend from one of your investment instruments, a nice commission on a sale you’ve made, etc. Instead of simply depositing it in your bank account, why not use that significant amount of money to hasten your loan repayment? For example, if your monthly payment is $230 and you unexpectedly came across an extra $500, you can use $460 to pay off two extra months and apply the balance of $40 to cover part of a third month. Or, you can divide that amount across the payment period and you will have a smaller balance to cover from your regular paycheck.
Also, look for different ways to generate extra cash. Paying off a loan can be done much faster if you find extra opportunities to make money that goes to your repayment fund. These are simple things like volunteering your services to paint houses on the weekends, designing wedding invitations or company logos with your computer graphic design know-how, conducting workshops on your area of expertise, and more. Fifty dollars here and there will really add up if you are up to the task of looking for ways to make money, and your final amount will prove to be significant in lightening your monthly payment dues.
3. Temporarily adjust your lifestyle. Cutting back on your expenses is a fantastic way of saving a good amount of money that can go towards repaying your loan. Try:
- Eating home-cooked meals instead of dining out
- Suspending your gym membership and magazine subscriptions
- Going on a clothes/makeup/accessory/shoes shopping ban
- Being extra conscious about your utilities consumption (water, electricity, gas, etc.)
- Having movie nights at home instead of meeting up with friends at the bar
Here, you basically look for ways to cut back on your expenses so you just live on the minimum amount you need to spend every month. You’d be surprised to find out how much you can save when you total the amounts at the end of every month. More importantly, you will be surprised at the fact that you can live without many things that you previously thought were essentials and can thus make new and improved habits for a lifetime.
4. Evaluate the benefits of prolonging your payment period so the monthly payments are more manageable. For many people, the reality is that it can be more difficult for them to generate more money or cut back on their expenses just to pay more each month and shorten the payment period. For this group of people, the option of spreading out their monthly payments so it becomes lighter (despite a longer payment period) might be the better one – even if it means they will have to to pay a higher interest rate. It really depends on your current situation, so this is something that will require careful thinking and a combination of short- and long-term planning. Doing so is the only way to determine if such a route will be best (i.e. more manageable) for you at the moment.
As you will see, these tips can really help in lowering the monthly payments for your car title loan and even shortening your payment period. It takes a lot of creativity to identify ways to make extra money on the side and cut back where you can to have just a little bit more left over. But for others, option #4 might be the best one – and that is okay, too. Strategies for making car title loan payments will differ from person to person, but it is only through a thorough analysis of what opportunities are available to you will allow you to say that the path you decide on is the best one. Discuss your concerns with your loan officer, see what solutions can be made to accommodate you, find out what you can do on your part, and pretty soon you will find a way to pay off your loan in the most manageable way possible. Once you’ve got that down, you can always try to pay off your loan quickly!