Get Help Paying Off Your High Interest Loans
By Space Coast Daily // January 20, 2021
It is far too easy to take out a short term loan, but much more difficult to pay it off quickly without incurring huge amounts of interest charges. That’s why you need to explore all avenues and try to pay off your short-term loans quickly.
Most companies will allow you to negotiate payment arraignments and they may even offer loan forgiveness if you give them a compelling reason of what’s happening with your finances.
The key here is to communicate with your lender and let them know what’s happening if you happen to fall behind on payments.
Check with the help of a certified credit counselor if you need help negotiating an early payoff. Most counseling services have low fees and are offered by non-profit companies. They can help you lay out a plan to make it easy to pay back car title loans and get back on the road to success.
If you know there is a way to get back on track, it’s far easier to take out a subprime loan to get back on track. Making your payments doesn’t mean you have to commit to monthly high-interest amounts.
Not only can they help you pay off a title loan quickly with a lower interest rate, but if you need a little help along the way, they can work with you to find another payment option. Whatever you do, is important to make it a sustainable strategy so you can get your car title loan paid off.
Ask Your Lender if They Can Lower the Interest Rate
Watch out for issues if you signed a contract that has penalties for early payments. Have you ever receive a call from someone who claims your car title loan is their problem?
It is very possible that the title loan company is to blame for setting you up to fall behind in your payments. Take the call, ask you what you’re doing to catch up with your payments and find out if your location has any special programs for catching up on payments.
If the company is legit, they likely have easy programs for those who find themselves in difficult financial situations, but a reputable one will quickly send them out an address of repayment.
Negotiate Better Terms with Your lender
Car title loans are high-risk loans, but when they push you into an even more difficult situation, don’t express yourself as ‘poor’. Instead, say something like, ‘I was just about to be late too, but I have an alternative payment option I can use to make payments until I get caught up.’
If a lender can just assure you that you need to pay something and just promises they are going to get you caught up later, it is more than likely an early payoff or advance fee scam.
If they try to get you into a program that you know they can get you into out of, it’s time to find another company.
If they are OK with you to pay them back over time, it may be time to inquire about a lower interest rate. This will not always get you a lower monthly payment, but if you have to give them more money at once to get back on track, it’s generally a good solution.
Hold out for what you’re getting. Especially if you have made the decision to pay off your car title loan, do not sign something until you get that offer in writing.
Going forward, only accept car title loans of $25 or less. If you find a company that is offering you something higher than that, ask some more questions.