Each of us from time to time finds ourselves in an emergency situation where funding is needed to cover urgent expenses. A Title Loan is one of the fastest ways to get financing, but at the same time it is fraught with risks. Since the Title Loan is secured, your vehicle is a collateral for the loan. If you are unable to repay the debt, then the lenders will take your car in order to consolidate the debt.
However, did you know that around 20% of title borrowers lose their cars? Statistics show that almost every fifth person who receives a Title Loan loses a car due to the fact that they cannot pay off the debt on time. Of course, many people who apply for a Title Loan do not think about the consequences. Most likely you did the same. If you do not know how to get out of a Title Loan, then explore the basic options that can help you get out of it.
7 Ways how you can legally get out of a Title Loan
If you are looking for a way to get out of a Titlemax Loan or another title company loan, then you should know that there are different options to look out for. Of course, the easiest and most logical way you can use is to repay the loan. However, if you haven’t done it yet, it is most likely that you don’t know where to get the money.
So, here are some basic ideas that can help you to get out of a Title Loan without losing your car:
1. Review the terms of lending
Before taking any other steps, it is recommended that you contact your title lender and try to renegotiate your loan conditions. Do not hide from the lender if you are in a difficult life situation and cannot pay off the debt, as he will be able to find your car anyway.
If you have already missed your loan payment, the lender may be able to lower the interest and fees and make it easier for you to pay the debt. It will also help you reduce the total loan amount you need to repay. Thus, if the lender agrees to renegotiate the terms of the loan, you will have a better understanding of how much money you need to pay off the loan.
2. Sell valuable things
As you know, one of the best ways to get extra cash is to sell things you no longer use. Study everything in your home and decide what you can sell off in order to pay off the debt in full. This can be anything from an old laptop or lawn mower to clothing or jewelry. You can also sell something that you do not need at the moment, such as a bicycle or snowboard. Believe me, it will be easier for you to acquire such an insignificant thing again than to lose your car.
Now you can take advantage of online platforms and put your items up for sale. Another good option is a garage sale. This way you will be able to quickly get the necessary cash and pay off the Title Loan.
3. Ask for an advance payment at work
If you are employed, then one of the best options for you is to ask for an advance payment. If you tell the employer that you are in a difficult life situation, most likely he will be able to provide you with the necessary amount in order for you to pay off the loan debt. Be honest with him and explain that you need a car to get to work so you cannot afford to lose it. Another option is to ask for extra work to get more money and pay off the Title Loan faster.
4. Refinance your loan with another lender
Another option you can use is a car Title Loan refinancing. This means that you must contact another title company and transfer your Car Title Loan. Of course, this is only a short-term solution to your problem, since if you continue to skip payments with a new lender, you also risk losing your car. However, how can this option help you?
Transferring your title loan to another company will save you time in order to find money to cover the debt.
5. Make money fast
Another obvious option that can help you is additional income. Now there are a huge number of vacancies that will help you get paid the same day you finish your job. You can be a handyman, walking dogs, cleaning houses, babysitting, and so on. Thus, within a fairly short period of time, you will be able to receive the necessary amount in order to cover your loan debt.
6. Rent out the room
If you have a spare room in your house or apartment, then this may be the ideal option for you. Many people are looking for housing, so you can find someone who will rent a room from you. Thus, you do not even have to spend time to make money, as you will receive regular monthly payments.
7. Get a Personal Loan with lower APR
Another option that you should definitely pay attention to is Personal Loan. Often, it does not require collateral, so you can get financing and fully cover your Title Loan debt. The advantage of this method is that as a rule Personal Loans have lower interest rates. What's more, they are unsecured so you don't have to risk your property.