If an unexpected expense is keeping you from making regular monthly payments, you may be able to get some relief from a car title loan. Title loans provide an emergency influx of cash to help keep you afloat in difficult times.
Since it is a loan, you’ll need to pay the money back eventually. Here are some tips that make paying back your title loan a little easier.
How to Pay off a Car Title Loan
What is a Title Loan?
A title loan is a small emergency loan you can apply to by allowing the lender put a lien on your car’s title as collateral. The amount of money you can take out is dependant on the value of the vehicle and your ability to pay back the loan. Once the loan is paid off the lien is removed, returning full ownership of the title to the borrower.
Title loans can get you a short-term influx of cash, but like any other loan, it comes with interest payments. By staying on top of your loan payments, you can pay off your title loan without incurring any additional interest.
Find a Payment Plan That Works for You
During the loan application process, you’ll have a chance to work out a payment plan. Consider how much you’ll be able to afford each month when you work out your monthly payments. If you can afford to make larger installments, you’ll pay off the loan sooner with less interest.
You can also opt for smaller monthly payments, keeping in mind that you’ll pay more in interest this way.
Build Your Budget Around Paying Off the Loan
When you’re making your monthly budget, make sure that your loan is one of your top priorities. It should be just below your housing payments, food, and basic utilities in importance.
You may need to consider temporarily cutting back on unnecessary spending while you’re paying off your loan. Costs like entertainment, meals out, and vacationing weigh down your budget and may keep you from being able to pay your loan payments.
Leave Yourself Reminders
We all forget to pay bills sometimes. To make sure you don’t forget to pay your title loan, it may help to leave yourself little reminders around your home. Use a car-shaped pencil topper, put alerts on your phone, or put a sticky note on your car’s dash.
Find Ways to Make Money on the Side
In tough financial times, it can be helpful to find a side job to bring in extra money. This doesn’t have to mean giving up your days off for a part-time job. There are simple ways you can make extra money from home.
If you can keep up with your payments, a title loan can be a great way to bring in some extra money. Cash Fast Loan Center offers quick and easy car title loans near Gastonia, North Carolina. Appointments take just 15 minutes and no credit check it required.