You’ve taken out a title loan after experiencing an emergency in your life. You took care of the problem and are now faced with paying the loan back or losing your vehicle. What can you do to pay it off quickly? When they take out auto title loans, San Diego car owners want to make sure they repay them as soon as possible to avoid repossession. Follow these four tips to get the loan paid off quickly and easily.
1. Round Up the Scheduled Payment
The title loan company likely gave you a number of minimum payments you’re responsible for making to pay off the title loan. The best way to pay off your loan is to increase the amount you pay per month. If your loan payment is $175 a month, round that number up to $200. The more you pay, the faster the loan will be paid off. Plus, you’ll save on interest if you pay it off earlier than expected.
2. Pay Even More on the Loan
You’re already rounding up your payment to get the loan paid off faster. Why not add even more to each payment? Look for ways to cut corners so you can add more to your payment. For example, don’t eat out or make any unnecessary purchases for a few months. Use the money you’d normally spend on luxury items for your title loan instead. It may be difficult to do, but you’ll have the loan paid off sooner this way, which will ultimately save you money on interest.
3. Consolidate the Loan
If you think you’re going to have difficulty repaying the title loan, consider a consolidation loan. A consolidation loan will take in all your current debt, including the title loan, and pay it off. You’ll then be responsible for one lump payment to the company that gave you the consolidation loan instead of making payments to all your debtors. It’s a good way to pay off the loan when you don’t have the money right away while still retaining possession of your vehicle.
4. Speak to the Lender
If all else fails and you don’t think you’ll be able to repay the loan before the lender repossesses the vehicle, talk to him or her. The lender may work with you to help you keep the car. Don’t wait until the last minute, and be honest about what you can and cannot pay. Many lenders can help you by giving you an extension on the loan so you have more time to repay it.
If you’re searching for an alternative to companies like American Title Loans, you can rely on the high-quality service offered by Payless Car Title Loan. Our loan process is easy, and you’ll find the highest levels of professionalism when you work with our team. Call us today at 619-600-0061 to find out how we can help.