How to Manage Your Car Title Loan Debt So That You Don’t Fall Back On Your Payments
A car title loan is a useful money resource to have for emergency situations.
However, enjoying a car title loan means staying in good books with your car title loan lender. You can do this by paying down your existing debts. This way, you will have a good record with your lender as a reliable debtor. You will also get back your pink slip, which is the key to getting a car title loan.
If you find that you have been struggling to repay your loan, there are a few helpful methods that you can apply to ensure that you clear your loan on time. They include:
- Schedule to raise repayment money every week
Car title loans in Sunnyvale have a repayment period of 30 days from the day you borrow. The best way to approach your repayment is by putting away a little amount every week.
If for instance you have borrowed $500, aim to raise $100 every week. Even though you’ll not be paying the amount weekly to the lender, you can put it in an account and make the payment on the repayment date.
You will find that by approaching your payment in smaller chunks, the task ahead does not appear too overwhelming. If you wait until the repayment day to raise the money, you have a higher chance of defaulting on your loan.
- Prioritize your debt
Your obligation to your lender should be your first priority. Before you start spending your income on yourself, you should make sure that you have paid what you owe.
Your lender is your lifeline therefore if you don’t honor your loan commitments, the lifeline will disappear.
- Only use your loan for its intended purpose
It is often the case that just before you borrow, you will always know exactly what you intend to do with the loan. After you borrow, the list of the things you want to do with the money increases.
The best way to avoid this confusion is to focus on the original need that led you to take out a loan in the first place. You will always have needs, but little money to satisfy them. All you can do for yourself is to prioritize.
If you spend on a whim, you will be doing yourself and your lender a disservice.
- Cut back
The best way to manage your debt repayments is by cutting back on your spending.
There is always something in your life that you can do without. For instance, if you usually spend $5 on coffee on your way to work in the morning, try brewing your coffee at home for a change and put the $5 in a jar on your kitchen table.
You can do the same with other expenses such as cable, lunch money or phone subscriptions. At the end of the month, you will have raised quite a bit simply by cutting back.
As you can see, repaying your car title loan doesn’t necessarily have to be a difficult task. Simplify it with the above tips and you will enjoy more loans for a long time to come.