How to Get Out of a Title Loan

Title loans are secured loans that use borrowers’ vehicles as collateral. So, if you have an outstanding title loan and can’t make payments, you’re in danger of defaulting and potentially losing your vehicle. Fortunately, there are some steps you can take to possibly get out of the loan and improve your chances of keeping your vehicle. Below, you’ll find a few tips on how to get out of a title loan if you’re unable to make regular payments.

Negotiate With the Lender

If you find yourself on hard times, your first step concerning your title loan should be to get in touch with the lender. Let them know you’re having difficulty making payments but don’t want to lose your vehicle, and ask for a payment plan that works for you. This strategy may work, or it may not. If your payments are deferred or the amounts are lessened, you’ll pay more in interest, so be prepared to tackle a higher sum.

Apply for Another Loan to Repay the Title Loan

At first, this doesn’t seem like a good idea — and it isn’t, but for some borrowers, it’s the only option that allows them to pay off their title loans and hold onto their cars. If you’re considering taking out a personal loan to cover a title loan, it’s worth noting that, unless you’re in a better financial position with a month or two, you’ll find yourself in a similar situation and your credit score will plummet.

Sell Your Vehicle

If you’d prefer not to take out another loan, consider selling your car. You can use the money made from the sales transaction to repay your loan. If you’re able to pay off the loan in one fell swoop, you’ll also avoid interest, which you only have to pay as long as the loan is unpaid. Of course, this solution may not work if you don’t have access to buses, subways, or other methods of transportation. However, it’s worth considering if you can part with your vehicle, at least until you’re able to purchase another.

Get More Information About Title Loans From Xpress Cash!

Do you have more questions about how to get out of title loan debt, or wish to take out a personal loan? Contact us at Xpress Cash! You can also visit one of your three locations in Michigan, Idaho, and Wisconsin for in-person assistance.