Title loans are quite costly and they usually stay with you a lot longer than you first anticipated. This type of loan is extremely risky because title loan companies in Utah might end up getting your car.
If you want to finish your title loan as soon as possible, check out the following options recommended by Loans For Less:
Consolidate or Refinance
Consolidating or refinancing is when you replace your title loan with a different one. Although this does not solve your cash problem, it can lessen your agony. You can switch from your title loan to a fixed rate loan from an online lender, credit union or bank. Fixed rate loans are usually less costly than your original loan.
Otherwise, you can consider getting a convenience check from your credit card company to lessen your payments and get your title back. With this option, you have to make sure that you can settle the bill before the promotions end.
Try to negotiate with your current lender, as they might be open to working with you. Propose the amount you can afford to settle and wait if they can accept it. They will be able to adjust your loan if you are having trouble with your finances, as they would rather get an amount from you than nothing at all. They can provide you flexible options like a lower interest rate or other alternatives that can decrease your bill.
However, you have to understand that you will have to sacrifice your credit score if your lender agrees for you to pay a lesser amount that originally agreed. You’ll have to face those low credit scores for many years and you’ll have a hard time borrowing in the future. If the lenders do allow you, it will be even more expensive than before.
Title loans might have given a solution to your financial problem, but it has led you to another one. Consider the options listed above and weigh your decision based on your current financial status.