Hello, I’m going to show you how to get out of a title loan as fast as possible while still getting the money you need.
HOW TO GET OUT OF A TITLE LOAN
1)Issue – High Apr
Solution – Refinance @ a lower rate (this creates issue #2 which I will describe soon)
Refinancing is a great idea, however the problem is how do you know who to go to? There are dozens of lenders. They are all thinking about their own pockets.
I spent hours searching into title loans because my mom had her car repossessed. She took out a title loan and felt helpless after making 10 payments and the balance was barely budging. I started calling companies and learning everything I could. I was giving fake applications just to find out what the lender rates were & to see if the rate my mom was paying was legal. (The rates are legal as long as the state allows it in the first place)
What ended up happening was a miracle. I called an agency who had someone come to the impound yard and refinance my moms title loan from 144% to 88%. After that happened I wanted to help people get away from the highest interest charging lenders in the industry. Here is issue #2.
2)Issue – The loan term restarts when you refinance.
Solution – Maintain your previous high payments and you will eliminate the contracted loan term and save thousands.
It’s that simple. Can you imagine paying the same payment you paid for 10 months however now you are paying a tenth of the interest you were before? That’s exactly what my mom did. She was going to pay about $17k in interest. Instead, this “more reasonable” lender refinanced her at a way lower rate but I advised her to keep making the same payments as before.Refinance at a lower rate now.
She ended up paying $2400 in interest and crushing the loan in 15 months. If you are in a title loan now, I strongly recommend you refinancing with this lender and doing what my mom did. There is no reason for you to volunteer your money away when I have provided this information for free!
If you would like to learn more about how it works, please continue.
So let’s say you had my moms scenario and you took a loan of $3,500 at an annual interest rate of 144% and the term 48 months. Your payment structure would be the same as the one displayed below in the image.
If you look at an amortization schedule of this loan you will notice the balance has barely budged after 12 payments! Now let’s imagine you refinance that car title loan to 96%.
Earlier I explained to you that the solution to the issue was to maintain the high payments you were already paying before so that you could save thousands and eliminate the term. Look at the image below to see what would happen if you refinanced at 96% and maintained the payment of 421.83 instead of the minimum of 287.14. In other words you would add $134.69 which you were already paying on the previous loan before you refinanced.
Do you see what that says? You would end up paying the loan off in 15 months instead of 48, and you would only pay $2,476.45 in interest instead of $16,749.85.
My mom was missing birthday presents for us because of her title loan payments. What will be your excuse if you don’t apply simple life hacks like this to get yourself out of debt?
The combination of both of the ways I described to you is the most powerful and effective way of getting out of a title loan. The mathematics behind it works with any loan amount or interest rates as long as the new rate is cheaper than the previous rates. Refinancing with the right lender is absolutely crucial because it costs you nothing and saves you thousands.
I can get you refinanced at the lowest rate possible. That’s what the whole point of this article is! Fill out the form below or email me any questions please. Thank you for reading.
Post by Alex@howtogetoutofatitle-loan.com