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 must be proactive to avoid this 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!
Get Out Of A Car Title Loan Without Losing Your Vehicle
The easiest solution to get out of a title loan online 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.
Are you stuck making payments on a title loan? Try to sell your vehicle or get a 2nd lien loan.
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, that may not work if you need your car or the title loan company is the current lienholder on the pink slip.
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 approved; you should get new payoff terms with a lower monthly payment. If you’re still current on the payments, refinance is much easier, so work with your lender to avoid a default. Contact Highway Title Loans for more info about our refinancing options and determine what types of terms to expect with a refi.
Get a personal loan to avoid losing your vehicle.
Remember, everyone falls into hard times at some point, and you should not shy away 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 your car away.
Default on the title loan & negotiate with your lender to avoid losing a vehicle.
Defaulting on the monthly payments can also be an option here. However, a loan default is never something we recommend, and anytime you fall behind on title loan payments, you risk repossession. Even if a title loan lender in Atlanta repossesses your car and sells it at auction, you may still be responsible for an amount you owe not covered by the sale. Because of that, you should only default if there’s no other option and you can’t make the required payments. If you’re ever in a situation where you may default, it’s best to contact your lender to see if there are any other alternatives to avoid this action.
Contact your lender to get out of your title loan.
For customers with equity in the vehicle, a title loan could be the only source of fast cash to help them out of an urgent financial need. However, many borrowers are stuck paying back 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.
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 to lose the vehicle to repossession or face a situation where you owe more than the car is worth! Your lender will have to pay money to take your car and sell it at auction, and they’d prefer you keep making the monthly payments! If you have any questions or need help applying, contact Highway Title Loans today!
Janet Patterson is VP of Marketing Communications for Highway Title Loans and the feature editor of its Lending Blog. Janet has worked in the financial service industry for over a decade, with 7 years of experience in the car title loan industry. She previously managed a customer service team that helped and advised consumers on all their lending related questions and concerns.