If you haven’t heard of them before, car title loans are a kind of versatile short-term loan that many people use to handle emergencies and unexpected expenses. They use the title of your car as collateral, so they are widely available to people with all credit backgrounds. Unlike a bank loan, the approval process is fast and easy, with cash amounts up to $15,000 available in as little as 30 minutes in many cases.
One worry a lot of people have about title loans is that they will have trouble paying their loan back. While any kind of loan should be used responsibly, the likelihood that you won’t be able to pay back a title loan is much, much smaller than you may realize. Here are 4 ways everyday consumers like you can pay back their car title loans.
Weird piece of advice, right? But it deals with one of the most common misconceptions about title loans: that your car is held hostage until you pay off the loan. This simply isn’t true. While the title loan agency does hang on to the pink slip to your car, you’re still able to drive it and use it as you normally would. When you take out a title loan, you don’t lose your ability to earn money, which is critical to paying it off.
If you find you don’t have the extra cash each month to pay off your title loan then it’s probably time to go over your budget. See where you can shave off a little every month to make room for paying back the loan. If you prioritize paying it off for just a few months, you should be able to go back to business as usual faster than you realize.
Like any other type of loan, you should try and avoid late payments whenever you can with title loans. It’s always better to pay off your balance as soon as possible, because incurring late payments will add extra expense. Pay off your loan promptly, and you won’t have to have it hanging over you head accruing interest.
If after all of the above you find yourself still having trouble making your payments, then you should contact the agency you took out the title loan with as soon as possible and let them know about your situation. Most agencies are more than happy to work out a payment plan with you that is both reasonable and gives you a little breathing room.
As you can see, there are a variety of options when it comes to paying off a title loan. If you’re interested in getting a title loan, the first step is to choose a provider that offers you the kind of respect you deserve, as well as the cash you need. Take the time to check out the options in your area, and don’t be afraid to ask questions.
The secret to paying off a title loan successfully starts with a plan, and part of the process should include doing your research. No lender is going to treat you better or understand your needs better than a regional or state-based one, so starting your search with TexasCarTitleandPaydayLoanServices, Inc. is never a bad idea.