3 Ways You Will Lose Money If You Don’t Repay Your Car Title Loan on Time

Car title loans are useful, but you should only get one if you know that you will be able to pay back. Any financial adviser will tell you that getting into a loan arrangement that you know you cannot honor will be a waste of money. As such, a one off total payment of your car title loan is the way to go if you want to save your hard earned cash.

Below are some of the ways that you can lose money if you don’t repay your loan:
  1. High interest rates

    In order to avoid wasting money, you should limit your car title loan to the usual 30 day period.
    Any period longer than that and your interest rate will start to pile up, and within a short time, it will surpass the amount of loan that you borrowed.

  2. Losing your car

    When you first default on your payments, the car title loan lender is required by law to give you an extension or make other arrangements with you such as repayment plans.

    If you default on these arrangements, the only option left will be to repossess your car. Buying another car is not cheap, so on top of paying a lot in interest; you will spend more money on a new car.

    Note that laws governing car title loans are different in different states. Read more about laws for car title loans Sunnyvale.

  3. Stress and related medical bills
    Getting repossessed is not an easy thing to go through, especially when you have been living under the yoke of financial strain.

    Simply put, getting your car repossessed can make you feel like you have hit rock bottom. This can lead to stress and stress related illnesses, and as a result, you will have to incur medical bills. This is further waste of money.

To save money, you should honor your payments by doing the following:

  • Get a second job if you must

    One of the ways you can stay ahead of your debt is to make payments. If you exert yourself just a little more and get a few more jobs, you can actually make a little extra cash for paying your debts.

  • Learn some financial management skills

    There is a lot of information available online about how to get your financial life in order and how to honor your debt commitments. Read this information and start applying it to your life.

  • Don’t dodge your debtor

    The worst thing you can do is run away from your lender. Most debtors do this, but in reality, they are just postponing the inevitable.

    Instead of watching your back all the time, invest your time in some productive ideas that will actually raise your money to help you make payments for your car.

  • Your debt should be your priority

    Prioritize your debts over your other expenses. If you are unable to pay your debt but are maintaining frivolous habits such as eating out, you are being dishonest to yourself and to the car title lender.

Cut back on some of your habits and you will find that you actually have money for paying your debts.

About Jack :
Jack Dowson likes to spend his time with his family and with his friends. In mean time he writes for www.bayareatitleloans.com.

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