How to Get Out of a Title Loan Without Losing the Car

There’s no getting around the fact that people can lose ownership of their vehicle because they can’t make payments on a title loan. Losing your vehicle because you can’t make the monthly title loan payments is one reason you need to be proactive to avoid this type of situation. Apart from inconveniences to your schedules and financial history, repossession can impact your credit score and interest rates with any future loans. This article discusses various ways to get out of a title loan online!

 

Tips to Get out of a Car Title Loan Without Giving up your Vehicle

The easiest solution to get out of an auto title loan is to be proactive and pay off the loan amount. You can do this all at once with a lump sum payment or make all your required monthly payments on time. Prioritize saving as much money as possible to pay down the borrowed amount. If you have extra cash flow each pay period, consider paying more than required. Let’s break down your options to get out of your lending obligation without losing the car.

 

Contact another lender or consider a buyout to get out of your loan

Although this may not be an excellent idea, going for another title loan could be a viable option if you desperately need to keep your vehicle but have no other available option to repay the loan. A buyout allows you to move from one lender to another with a fresh start and should give you enough time to reorganize your finances and accumulate enough funds to make timely repayments. Another option is to consider a personal loan, low interest installment loan, or even a vehicle registration loan with better rates and repayment terms than your initial loan offer.

 

Sell the vehicle to get out of a secured lending contract legally

If taking another online title loan is impossible, selling your car could be a perfect alternative. You can use the amount from the sale to pay down the debt and start afresh. This option allows you to save cash for the entire loan duration. However, if your vehicle is the only mode of transportation, this option won’t work. This option also won’t work if you’re trying to sell a vehicle that’s attached to a pink slip used for a current loan. You need to sell a car that’s free and clear.

 

Get a cash advance or another loan if you’re stuck making title loan payments

Most title loans are issued for a few thousand dollars. If you have a credit card with an adequate available credit limit, you can repay the full amount with a cash advance from your credit. Unfortunately, most credit cards have high interest rates for cash advances. They also have a revolving loan term that makes it quite challenging to pay off the debt once and for all. However, if you don’t have other options, using a credit card cash advance could be the only way to save your car from being repossessed.

 

Refinance your future title loan payments

Have you ever considered refinancing your current title loan? It doesn’t matter if you refi with the current lender or find a new company because once you’re approved, you should get new payoff terms with a lower monthly payment. It’s much easier to refinance if you’re still current on the payments, so work with your lender to avoid a default.

If you have equity on your house, you can apply for a refinance or a home equity loan and use the cashout amount to settle your lending obligation. A home refinance loan typically has several advantages: it has a lower interest rate, a longer repayment term, and a substantial amount of money than credit card cash. However, you will need an excellent credit score and equity established on your home to qualify for this loan. The loan can also take a more extended period of 30 days or more to get approved. However, this is a viable idea, especially if you need to get out of your title loan quickly.

 

Stuck in a title loan? Find out how to negotiate and get out of future payment obligations!

Borrow money from friends or family to get out of your title loan without losing your car

To most people, asking a friend or family member for financial help is the last thing in their mind. Although it can be embarrassing and humbling, asking for help from close friends and family members is a better option than losing your car. Remember, everyone falls into hard times at some point, and you should not shy off from seeking direct help from your family. When considering this option, the rule of thumb is to set up strict repayment terms and offer to pay interest on the loan.

 

Negotiate new payoff terms for your current title loan

If you are in a situation where you feel you can’t afford to pay off the loan amount, contact the lender immediately and ask for new repayment terms. Most lenders would rather have you make new payments under new terms than take away your car away. A renegotiation may include asking the lender for lower interest rates, a longer loan term, lower monthly payment, or a combination of all the options depending on your financial situation. Once you agree on the terms, ensure you have a written financial agreement signed by both parties.

 

Default on the title loan & negotiate with your lender to avoid losing a vehicle

Defaulting on the monthly payments can also an option here. However, it comes with higher costs, including the risk of losing your car and a negative credit score. Even in a situation where a title loan lender in Atlanta takes back your car as compensation for the loan, you may still end up with garnished wages if the car’s value cannot pay for the remaining balance. However, this could be an option if you have another vehicle.

 

Reach out to your lender to get rid of your title loan so you can keep driving your car

For the 2 million Americans who borrow against their vehicles annually, car title loans could be the only viable source of fast cash to help them out of an urgent financial need. However, many borrowers fail to pay the money back to the lender leading to the risk of vehicle repossession and damaged credit history. If you have defaulted or are at risk of defaulting on the payments, keep in mind the lenders always make good on their auto and repossession warnings.

It is crucial that you carefully explore all options available to determine the best course of action and settle on the title loan value for your vehicle. This starts with you reaching out to your lender’s customer service team to see what they can do to help. The last thing anyone wants is for you to lose the vehicle to a repossession or face a situation where you owe more than what the car is worth!. Your lender will have to pay money to take your car and stage an auction and they’d rather you continue to make monthly payments! If you have any questions or need help applying, contact Highway Title Loans today!

 

Apply for a buyout to get out of loan payments.

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