How do you pay off a car title loan?
I took out a car title loan a little over a month ago, and I could barely make the first payment. I’m not sure if I’ll be able to keep up with future payments, and I don’t want to lose my car. What’s the best way to pay off a car title loan?
I’m relieved to hear you were able to make your first payment and keep your vehicle! That said, car title loans are notoriously difficult to pay off, so you’re not alone in this struggle. Fortunately, paying off the car title loan is manageable by cutting expenses, refinancing, or using alternative types of debt.
To pay off your car title loan and make repayment more manageable, you can:
- Negotiate with the lender. Lenders are not obligated to negotiate with you, but if you are struggling to repay, the first thing you should do is speak with them.
- Refinance. If the lender isn’t willing to negotiate or the payments are still too high, you can refinance the title loan. With a refinanced loan, a new lender takes over the debt and offers better terms and a more favorable APR.
- Pay with a credit card. Credit cards often have lower interest rates than car title loans, and you won’t have to worry about losing your vehicle.
- Consult a debt management organization. Many of these nonprofit agencies can help negotiate with your creditors and set you up on a repayment plan you can afford.
Not all refinance lenders or debt management organizations are the same, so shop around and compare multiple offers before signing any agreement.
If you want to save money on car insurance to pay toward your title loan, the Jerry app is a good place to start. As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How can you get your title after paying off a car loan?
I finally finished paying off my car loan last week, and I’m looking to sell the vehicle soon. How do I get my car title back after I pay off a loan?
Nov 30, 2021
How do you get your car title after paying off the loan?
After four years and not a single missed payment, I finally finished paying off my car loan. My car was the first sizable financed purchase I made, and I’m excited to own the vehicle officially. How do I get my car title after paying the loan?
Nov 30, 2021
How can you get out of a car title loan?
I took out a car title loan a little while back and I’ve struggled to repay it since the first month. I’ve extended the term four or five times now and I have no idea how I’m ever going to be able to pay it back. How can I get out of a title loan?
Nov 30, 2021