Tips for Paying off Your Title Loan and Keeping Your Car

When you’re in a financial bind and need cash fast, your stress levels are bound to rise. Fortunately, if you own a vehicle, a title loan is a viable option to get the funds you need. Still, promptly paying back your loan is crucial to avoid spiraling into debt. Here’s a guide on why and how to pay off your title loan quickly, ensuring you save money and get to keep your car.

Why Paying off Your Title Loan Early is a Good Thing

Paying off a title loan quickly benefits you in several ways. First and foremost, it saves you on interest, which means you’ll pay less overall. Settling your debt sooner also frees up your budget for other expenses. And finally, it grants peace of mind, knowing the lender can’t repossess your car for falling behind on payments. It’s worth noting that reputable lenders don’t charge penalties for early repayment, making it a win-win situation.

How to Pay off Your Title Loan Faster

Early repayment requires strategy and discipline. Here are some tips to help you clear that debt sooner:

1. Round up your monthly payments: If your payment is $176, round it up to $200 to shorten your loan term.
2. Never miss a payment: Set up automatic payments or schedule reminders for yourself so you always pay on time and avoid late fees.
3. Only borrow what you need: If you get approved for a higher amount than you need, it’s tempting to take out a larger loan. Just remember, you have to pay it all back, plus interest, so it’s best to only borrow what you really need.
4. Apply extra income: Put work bonuses or tax returns to good use by applying them toward additional payments.
5. Assess your repayment schedule: Use online amortization tools to figure out how much sooner you can pay off your loan with additional payments.
6. Earn extra money: Consider side gigs like driving for ride-share services or selling unused items online. Then, put this supplementary income toward paying off your title loan.
7. Cut non-essential expenses: Along with earning more money, the other way to boost your funds is to spend less. Cut back on streaming subscriptions, cook at home instead of eating out, and go at least a month without buying anything non-essential at the store.
8. Pay it off all at once: If you come into a sum of money, discuss payoff options with your lender. Most are glad to accept the outstanding balance in full.

Drive Forward with Confidence

At VIP Title Loans, our goal is to help you find a financial solution that fits your needs without stressing your budget. That’s why we offer the best title loans in Texas, with the lowest rates and most flexible terms of any title loan lender in the region. Whether you need fast money for an unexpected expense or to bridge the gap until your next paycheck, we’re here to help. Ready to take the next step? Call us at 817-265-2274, fill out our online application form, or visit one of our five convenient locations in the DFW Metroplex.