Dealing With Debt Settlement For Vehicle Title LoansFast Action Finance SEO
One of the easiest loans which gives you cash the fastest are car title loans, including car title loans in Mississauga. Car title loans are very easy to apply for since all you need to have is a valid identification, full-coverage insurance, and a debt-free car. The terms of car title loans are typically one year to one year and a half, but can sometimes be paid-off earlier. Sometimes it happens we are unable to pay off our loans in time due to some unavoidable circumstances. It is advisable to accept the situation as it is, so as to have a sober mind on what will happen next and plan how you can handle the situation before it gets worse.
It is always advised to have a plan B in place before you take any form of a loan that will reassure you that you will be able to pay off your loan when the need arises. However, most people don’t always have a plan B which can leave them very overwhelmed if plan A fails. This article will help you understand the options you have to help you with debt settlement on car title loans.
Paying off the debt
I know you are wondering how this applies to your case since you may not have enough cash and you are seeking alternative ways of settling your debt. Well, the good news is that there is more than one way you can pay-off your title loan. You can consider approaching your lender to give you payoff instructions. Many lenders will do this as they are only interested in recovering their funds. You may request for a longer loan term to pay off in smaller installments that you can handle. This is only applicable if you are sure you will have some money coming in, or if you are able to afford the lower payments for a longer period of time.
If no money is forthcoming, you can always opt to downgrade your car. This means selling your car to repay off your debt and using the remaining cash to purchase a car of lesser value. This, however, needs you to involve the lender since they have a lien on your vehicle. You can also apply for a consolidation loan from your lender or any other lending company to pay off your car title loan.
If you are cash strapped and you have no other ways to acquire extra money to pay off your debt, you can disclose this information to your lender and let them know that you are unable to clear your debt but willing to negotiate to clear a certain amount.
Typically, most lenders are willing to settle on an amount less than the amount originally agreed upon. This is because it is better for the lender to recover some of the money than to lose it all. If your negotiations skills are not the strongest, then you can approach Debt Consolidation services to negotiate on your behalf on a debt management plan. Ensure that you have your final agreement in writing because verbal agreements cannot stand in court.
However, contacting a debt consolidator is highly unlikely. You may be surprised as to how willing the lenders are to work with you if you find yourself behind on payments. The most important thing is that you contact your lender and explain the situation. They cannot help you if they do not know what is going on.
Before you get a car title loan, always ensure that you are well prepared to settle your debts in time. Even if you are well-prepared to pay your debts in time, there should still be a plan B in place. Sometimes, it also pays to talk to your lender because they may offer you various ways to pay off your vehicle title loan.