An Austin title loan is easy to apply for and easy to receive. You can have the money deposited directly into your bank account or you can pick up your loan money from one of our many convenient locations. It's a piece of cake. One of the great perks of auto title loans is that you can spend the money however you want to. There's no need to account for how your funds are spent.
With much freedom comes much responsibility, though. The joy of receiving and spending you loan to pay off necessary bills like eviction notices, utility bills, car repairs, or medical bills quickly gives way to the reality that you *have* to repay this loan. The greatest unpleasantness of defaulting on a title loan is that your car can eventually be repossessed by the lender.
The reason for this is simple: To take out the loan, you used your car as collateral. That means if the loan goes unpaid, you're looking at repossession. In some states, your car is repossessed and sold to make up for the loan amount, and if any money is left over from the original loan amount, you get the difference. This isn't so for every state, though. Given the serious consequences of not repaying a title loan, it's wise to have a very good plan for repaying the loan in the quickest amount of time possible.
Paying off a title loan early should be one of your FIRST priorities. Granted, you don't have to be early as long as you pay it off eventually, but if you follow some simple tips for repaying a title loan off early, you will end up paying far less interest than if you pay it off over the course of several renewals. Some people NEED renewals and we understand that. Your end goal is always repaying the car title loan. Early is better though.
So you've received your car title loan and spent the funds. Now you might be wondering how to pay back a loan like this in the least amount of time possible. You're a responsible borrowers for even wondering about this. Far too many people save their car title loan payments for the end of their other responsibilities and stretch it out, to their own detriment because of interest. If you're one of the people out there who wants to pay this money off as soon as possible, we're here to help with a few suggestions.
The benefit of repaying a car title loan early is obvious. You'll pay less interest. You won't be pushing the payments back and putting yourself in a position to get behind on them. You won't have to worry about title loan companies fussing at you to repay. It's just a simpler way of doing things. So let's get started. You have one goal: PAY OFF THAT LOAN! Here's how to pay back a loan like this.
When you accepted your title loan, you also accepted terms of repayment that should have been put in writing and explained to you BEFORE you accepted the loan. After you get your loan money, you should already be aware of the title loan's repayment terms, so you know what that first bill is going to be when it comes due. Do whatever you can to make that first payment! It sets everything off on the right foot and gets you started on the path to success.
If you're wondering how to pay back a loan, part of the trick is to make sure that you get a good deal on your title loan. This means negotiating a realistic interest rate for repayment. Most lenders are going to at least negotiate a bit on interest, if it means getting your business. This won't always be a possibility, but it's always good to talk seriously and realistically BEFORE you accept your loan. Don't agree to repay it if you can't.
To repay your loan, you're going to need all of the basic budgeting skills that lead to repaying a loan in the first plan. You need to see the loan repayment bill as a necessary bill, not one that you can push to the side indefinitely. The further you get behind on payments, the harder it will be to repay because of the interest. Don't make the mistake of getting behind on these loans! If you said you would repay it in a certain amount of time, make sure that you do. If you must miss a payment, make sure that you contact the lender and let them know why and that you are willing to re-negotiate repayment terms so that you can repay.
It's amazing how much lenders want to work with borrowers. This isn't a lost cause, as long as you haven't defaulted on this type of loan. The lender is going to give you ample opportunity to repay the loan in a manner that's not going to completely break your household budget for months at a time. If you have to sacrifice one bill, though, don't let it be the title loan payment. This is about retaining possession of your car. Missing a payment is like missing a payment on your car and risking repossession of that car. It's nothing to play around with at any stage of the repayment plan. If you want the best chance of repaying early or on time, you need to negotiate well before you accept the loan and make sure that you've promised to repay in a manner that's realistic with your budget.