Are you searching Google for “How To Get Out Of A Title Loan Fast” because you’re stuck in a title loan that is difficult to pay off? Auto Tile Loans USA can help in multiple ways! First of all, we put together a guide to help you learn ways to get out of your title loan and we also offer title loan refinancing services for loan borrowers who live in the Phoenix Metropolitan area.
When it comes to title loans, they can be considered a comfort bed in a proverbial sense, they are easy to get, but will be something you eventually want to get back out of. Title loans are expensive, and often take longer to get rid of than expected, which means you continue to pay the cost of loans rolling over each month. Then there is the risk, meaning you can lose your car.
Options For Getting Out Of A Title Loan
If you are looking to solve your title loan debt, then you have a few options to choose from.
Option 1. Paying Off a Title Loan
Paying off the loan – This is your ideal solution, with the easiest method being to pay the loan of. However, this is much easier said than actually done. Chances are, if you could afford to simply pay off the loan, you would not have got a title loan to begin with. If you have run into cash since then, and you are able to repay on the loan, then you should reach out to your lender and request a payoff amount and instructions. Of course, do not be shocked if you run into challenges as there are lenders who try to drag out a repayment process because they prefer you continue paying monthly interest rates.
Swapping the car
This option is available if you’re unable to pay off the loan. You could simply sell the car to obtain cash, but this can be a challenge without a clean title. Although, it does happen quite often. By downgrading your ride to a cheaper vehicle you are able to save money in fees and interest, while freeing up a monthly flow of cash.
Consolidation or refinancing
This is yet another option to get out from under your title loan, by replacing it with another type of loan.
While getting your title loan out the way by switching it off does not solve the initial issue of being low on cash, it can help. By getting a loan from an online lender, credit union or bank with a fixed rate you will often have lower fees than a title loan. You can even use your credit card to write a convenience check to lower your costs, if you are able to pay the debt off before any promotional periods end. Of course, you also get you title back too.
If you find obtaining a replacement loan is too challenging, you can visit small credit unions and local banks to increase your chance of approval. You could take a look at peer-to-peer online lenders as well. If these options are not working out, you could see if anyone would be willing to co-sign for you to get approved, just ensure they have the ability and willingness to take the risk.
You can read more on consolidating debt to learn more.
Option 2. Negotiate Better Terms
There is the chance your current lender is willing to work on your terms, so attempting to negotiate terms is worth a shot. Simply offer them the amount you can comfortably afford, and find out if they accept it or not. This is especially worth trying if you find finances are out of control. The lender may consider receiving something each month is better than nothing.
This is something you could try, even if your financial situation is not currently in dire need of being freed up. You could learn your lender has other options available to lower your interest rate or make adjustments to lower payments.
If the lender does agree to a lower payment you will find that it will cause your credit to suffer because it will show you have settled to pay less than originally agreed. This results in having a lower credit score, and can impact your credit for years. It will cause borrowing to be more challenging.
Option 3. Defaulting On The Loan
You have the option of not paying at all, but this is not recommended. By defaulting on the loan, your credit will be greatly affected and your car will eventually be repossessed by the lender, no credit, no car, and likely have to own anyway. Although, you may be able to slightly improve the situation by surrendering your vehicle voluntarily. However, you will still have your credit score impacted. But, you will not have a monthly payment and that could help your financial future.
Option 4. Should I File For Bankruptcy?
Before making this decision, you should speak with a local attorney and discuss your personal situation. There may be details in the fine print that are important, not considered within this article. There are cases which bankruptcy only provides a limited amount of relief from an auto title loan. It may assist in avoiding personal liability when it comes to deficiency judgements, but your car will likely remain the collateral for the loan, which can still be taken if repayment is not made.
Avoiding Title Loans
This is by far the best method, simply avoiding a title loan to begin with, or avoiding them in the future once you’ve gotten rid of it. You should focus on your financial hardships in the future, build your emergency savings (commonly thought to be 3 to 6 months of expenses, if not more). Improving credit will help you have more options when borrowing is needed.
Option 5. Title Loan Refinancing
There are some lower interest title loan companies that will help you refinance your title loan with a lower interest rate and more affordable terms. Phoenix Title Loan offers Title loan refinancing services in Arizona. If you need to renegotiate your title loan terms, give us a call today at 888.426.0600.