While the simple answer may be to just set up autopay, that is easier said than done. Sometimes, paying off your loan requires a specific strategy! It is okay to struggle with paying off an auto title loan. Your financial situation may have changed, or you lost your job.
There are strategies you can look at to pay off an auto title loan that may help you to pay off the full balance! Take a closer look at the tips and tricks from LoanMart below.
What are Some Ways I Can Work to Pay Off My Auto Title Loan?
If you are struggling with paying off your title loan, you should first keep in mind that you may have the option to refinance your loan. Contact your lender to avoid loan default if you are truly struggling!
If you think you can manage to repay your title loan without refinancing it, there are a few strategies to consider. Take a look at what you can do to pay off an auto title loan:
- Get a Second Job or Income: You can pay off your loan easily if you have a second stream of income to rely on! While this is not a sustainable option forever, it may be helpful for a few weeks or months. Wait tables, work weekends, or even do a simple data entry freelance job when you have time.
- Sell Your Unwanted Items on OfferUp or Facebook: If you have valuable items that you are not using, don’t let them just sit in your closet! List that extra table in your garage or some nice boots you got for Christmas. Just use their apps to sell locally and see what your offers are. You would be surprised by what you can sell!
- Sell Items on Etsy: Etsy is a one-stop shop for many homemade goods! Try selling some of your hobbies and utilizing what you can to be a small business owner. Many art and craft artists on Etsy earn a decent living!
Create a Budget to Pay off Your Auto Title Loan
While you may have considered the above tips and tricks to pay off a car title loan, there are other things to consider to stay on top of your loan. The first tip to consider is to create a budget. Through this budget, you can prioritize your payments and take a look at your expenses versus income.
To initially create a budget, use free website templates! You will be asked to provide details about your fixed and variable expenses.
- Variable Expenses: These expenses change month to month and are not installment payments. They are things like groceries, utilities, transportation costs, and even entertainment costs.
- Fixed Expenses: These are essential items that do not change each month. Typically, fixed expenses are things like your title loan payment, auto loan, and even your rent. These expenses are often the items that need to be prioritized.
To create your budget, take both of these expenses and compare them to your monthly income. Typically, you can use your past bank statements to take a closer look at your spending habits. From there, break down the spending into separate categories. These expenses could be utilities, rent, entertainment, groceries, clothes, etc.
From there, you can see where you can cut back or where you are overspending. If your electricity is too high, consider turning off the AC and opening windows when you can.
With your new budget, it may be possible to create a little wiggle room and free some of your income! From there, you can dedicate this extra money towards your loan payment each month. Always pay more than the minimum due if you can!
Always Reach Out to Your Lender If You Have Trouble Paying Off an Auto Title Loan
If you are having issues with your title loan payment each month, it may be time to consider refinancing. However, you cannot allow your loan to enter default if you wish to refinance your loan! That is because lenders may not allow you to if your loan is not in good standing. If you face further financial difficulties during your repayment period, always contact your lender BEFORE you default, not after.
Following this advice and staying on top of your payments is important! If you can’t consider reaching out to your lender and see what your other options are. You may be able to refinance your loan or obtain a different schedule.