Auto title loans as one of the easiest loans to get and if you're not careful, it could become a vicious cycle of paying and getting more. Eventually, you will need to get out of it because title loans are typically expensive and they always stick around longer than you planned initially. This means that you will be paying money every month and worse than that, there is a possibility you could actually lose your car.
[b]How do you get rid of your title loan?[/b]
The best way for you to do that is to pay off the loan as soon as you can. However, for most people this is easier said than done, as money is not easy to come by especially when you already have a loan. However, if you do have an income that allows you to pay the loan, you should prioritize it so that you can get out of it sooner.
[b]Swap the car[/b]
If it gets to a point where you feel you might not be able to clear the lawn, it would make more sense for you to sell the car in order to generate cash. This is a better option than letting the lender have the car entirely. Of course, selling a car without a title loan could get a bit difficult, especially when you owe money against it. However, difficult does not translate to impossible. Sell the car and downgrade to a less expensive one so you can have enough money to pay the loan.
[b]Consolidate or refinance[/b]
If you really have no way of paying your [url=https://www.embassyloans.com/embassy-loans-in-florida/embassy-loans-miami/]Miami auto title loan[/url], you can replace it with a different loan. This might not necessarily solve the main problem of getting rid of a loan, but a fixed rate loan from a bank or a credit union will be less expensive compared to a car title loan. This might not be possible either because you probably tried to get these loans before the title loan. However, if you did not, this is a good option to pay off that debt.
[b]Negotiate with the lender[/b]
Your lender is also a person who understands the situation and they might be willing to work things out with you. Negotiate with them and offer as much as you can afford to gauge whether they will accept it. They might be willing to accept it, especially if they realize you could be insolvent soon. Some lenders are actually always willing to accommodate and you could be surprised at the options they may offer you for adjusting your payment.
[b]File for bankruptcy[/b]
A bankruptcy will help you get limited release from the loan and you might be able to avoid personal liability. Of course, you have to be ready for the car to continue serving as collateral and the possibility of the lender taking it away from you entirely.
[b]Avoid title loans
[/b]Once you clear your payment, the best thing you can possibly do is avoid title loans altogether. As soon as you put everything in order, repair your finances and build yourself an emergency savings fund for several months. You should also strive to improve your credit score so that in the future you will have better lending options.
Tom Clark's Blog
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