If you’ve received an auto title loan, you’re probably thankful for the quick access it provides to the cash you need. Hopefully, you’re in a situation that allows you to pay off the loan quickly. If so, you may be wondering if you’re able to pay off the loan early. Alternatively, if you have a loan with a rate that’s too high, you may be wondering whether you can refinance the loan.
If you have questions about loan payoff in Phoenix, AZ, you’ve come to the right place. Let’s take a look at the ins and outs of paying off a car title loan.
Paying off your title loan early
You can pay off your car title loan early, and if you’re able to do so, it’s a great option. That’s because you will save money on interest. Interest is the additional money you pay a lender in exchange for providing the loan. It’s typically charged as an annual percentage rate, or APR. Some auto loans are tied to high APRs, which means it’s even more important to pay them off as fast as possible.
This will also mean you avoid other potential consequences of not paying the loan, such as late fees and car repossession. Paying off debt will give you a sense of satisfaction that you’re free and clear of owing money. You will be the sole owner of your vehicle once again.
How to pay off your loan early
While you might not have enough to pay it off all at once, it may be possible to pay it off more quickly. One easy way to do so is to use the “round-up” method. This means that you round up to the nearest $10 or $20 mark each month. This way a bit more of the loan gets paid off each month, without putting a strain on your finances in the process. Eventually, you’ll be able to say the loan is paid off in full.
Alternatively, you may be able to make one large payment each year that takes a significant chunk out of the loan. Another option is to make payments more frequently. Instead of only making monthly payments, send in biweekly payments.
Avoiding accumulating debt
It’s important to remember to always make your payments on time and to not fall behind the loan schedule. This is where the problems with late repayment come in. Late penalties and interest can snowball and leave you behind on your debt. But paying down the loan each month as scheduled will mean you’re one step closer to being free of that debt.
Are you looking for the leaders in personal title loans in Phoenix, AZ? Cash-N-Go Auto Title Loans of Phoenix meets your immediate cash flow needs and allows you to keep your vehicle as you pay off the loan.
Our professional staff will help you find the loan that fits your financial situation or refinance an existing loan. Give us a call today at 602-264-3640 to learn more about what we can do for you!
Categorised in: Title Loans