Did you apply for a title loan with the wrong lender? Now you’re stuck paying high interest fees and hidden charges. Since your vehicle serves as collateral, you risk losing your car if you fall behind on payments.
If you can’t pay off the loan by the given deadline, your lender might offer to roll over the balance into a new loan, giving you more time to pay before they repossess your vehicle. But this tacks on new fees and may raise your interest rate, trapping you in an endless cycle of debt.
By now, you may be feeling a little desperate. How do you get out of a bad title loan, anyway? Rest assured that you have options for bringing the balance down to $0, even if your credit isn’t great. Explore four possibilities here.
Find Ways to Pay Off the Balance
The number one option to end the debt cycle is to pay off your title loan as soon as possible. Of course, this assumes your lender doesn’t charge a prepayment penalty. To get the extra money you need, consider these options:
- Cancel subscription services and put the savings toward paying off your loan.
- Sell valuables you no longer need.
- Take on a temporary side gig.
- Request more hours at work.
- Ask for a raise.
- Borrow money from friends and family.
Work Directly with Your Lender
There’s no guarantee your lender will be willing to negotiate your loan terms, but it doesn’t hurt to ask. You may request reduced payments, a lower APR, or a longer time to repay the loan. Make sure you can afford the new terms, and get all the details in writing.
Seek Help from a Debt Management Firm
If you need assistance with your overall debt situation, contact a local debt management firm for help. The team here may give you more negotiating power when working with creditors, including your title loan lender.
Look for a Title Loan Buyout
The final option to get out of a bad title loan is to pursue a title loan buyout. This is when a new title loan lender pays the balance on your existing loan and offers more agreeable terms to help you get out of debt faster.
VIP Title Loans is the place to turn for title loan buyouts in Texas! We offer longer terms than most title loan lenders, so you don’t have to roll over your loan every 30 days. We also have lower interest rates to make your payments more affordable.
If you think you might not be able to make the minimum payment on your existing title loan, call us at 817-265-2274 for help creating an affordable payment plan. You can apply for a title loan buyout online or visit one of our five convenient locations in the DFW Metroplex. Our friendly team will help you take out an affordable new title loan, pay off your old one, and get you on the path to being debt-free.