A title loan against a car is a loan that you have secured by using your car as collateral. The car must be paid for so that you hold the title and then you basically use the car as collateral. The loan company places a lien on the title until you repay the loan.
If you do not repay the loan in full, then the Loan Company gets the repossession rights towards the car.
These loans often have higher interest rates and are used as a last resort. However, when you are really in need of fast cash, it is an option. But your real problem begins when you can’t continue to make the loan payments for whatever reason.
Now you owe a debt but are also facing the loss of your vehicle from a no inspection title loan. Without a second vehicle it will be much harder to keep a job, pay your bills and continue to try to rebuild your credit. You need to find out how to get out of a title loan without damaging your credit or losing your car.
The Best Option to Get Out of a Title Loan
In this case, as in most cases, the most obvious option is the best option. Paying off the title loan will not only get you back the title of your car but it will ensure that you will not damage your credit rating. But what sounds like a simple and logical resolution isn’t really that simple.
You would have simply paid the loan off if you had the money, but you don’t. So it’s time to explore more creative options to paying off your title loan. You might not have thought of this as an option, but selling your car and using part of the money you get to pay off the title loan is one option.
It settles your debt on the title loan without job and gives you additional cash to use for a down payment on a new car purchase or lease. That is a good option if you will have the cash flow to make payments on the new car.
If your budget has gotten very tight, maybe you lost your job or a side income, then you can use the money you have left to pay cash for a less expensive car. It might not be your dream car or even a car that you really want but it is transportation and it did get you out of the title loan.
A More Creative Option
You have a job but it’s just not bringing in enough money to repay your title loan. So maybe it’s time to use your vehicle to make some extra money. You can work nights, weekends or whenever you have free time using your car to Drive Lyft or Uber.
There are several services that hire contract drivers for rideshare trips or as a livery service. Many restaurants offer delivery and there are companies that do nothing but hire contract drivers to deliver food and other products that consumers are ordering.
It’s not a glamorous job and it won’t make you rich quick but it will let you keep your car, get your title back and save your credit. If using your car to earn an extra paycheck doesn’t sound appealing then check out other part time jobs that you can land to help you pay off the title loan.
Market Your Skills
Maybe your regular job is not on a regular schedule and it is impossible for you to work a second job. You can still market a skill that you have and can provide to others in your free time.
Maybe you are good at sewing and can alter clothes, maybe you like to paint and can offer your painting skill on local service boards, on bulletin boards in stores and around your neighborhood.
You can also look online at the local job boards. Most of the online services now offer a section of gigs which are short one time jobs.
Sell Unwanted or Unneeded Items
Most people have a pile of items in the back of a closet, in the attic or a storage unit that they haven’t thought of or used in years. These items are not really doing anything for you other than collecting dust. But someone might be able to use them and would be willing to pay you for them.
Spend a few hours sorting out items that you are willing to sell. Clean them up and make them look as good as you can and then snap a few photos of them. List these items on a local sale/ swap site or an app such as craigslist or LetGo.
You don’t need to have high prices items, even selling a few smaller, less expensive items will help because any money you get is complete profit. You didn’t pay anything to list it or sell it and you might even save some money if you sell enough stuff to eliminate the need for a monthly payment on a storage unit.
Many Solutions to One Problem
The fact is that you already know how to get out of a title loan, you just don’t know how to get the money to pay off the loan. No one takes a loan planning to not pay the money back. But sometimes unfortunate things happen and you simply can’t pay back the loan, at least in a conventional manner.
But that is when it is important to remember that not paying off a title loan can cost you your vehicle and your credit. So finding unique ways to earn a little extra money is worth the effort and time you will need to invest. Maybe selling the car to pay off the loan is a good solution for you.
Public transportation will meet your needs and you will also save on car insurance and license plate fees. But if that is not an option then new and creative ways to earn money are your solution to how to get out of a title loan.
You just need to decide that you want to be in control of your own financial destiny and make the effort to use one of these solutions to get out of your title loan without damaging your credit.