How to Get Out of a Title Loan in Georgia

Title loans, also known as title pawn transactions, are incredibly tempting when you need fast cash in Georgia. Once the loan is secured, however, you are left with that debt hanging around your neck. As a financial option, title loans are expensive. There is also the risk of rolling the loan over each time because it is a convenient solution to money woes. You also risk losing your vehicle if you can’t pay back the loan.

Getting out of the title loan cycle is probably the best option for sorting out your finances once and for all. There are a number of options for getting out of a title loan, but it is important to ensure you don’t end up with even greater debt. 

Pay off your Title Loan

It may seem like the obvious solution but paying off a title loan is not always the first option that debtors consider. If you can find ways to tighten your belt, paying off your title loan is a smart way to utilize extra money. 

Unfortunately, many debtors simply do not have the cash-flow to get out of title loan debt. There are other options you may want to consider if you are tired of paying continuous interest on a title loan. 

Downgrading your Vehicle

You may be able to sell your vehicle – even if the title is not free and clear due to money owed. If you own  a car that is worth more than what you owe , downgrading could provide the solution you need. It is worth thinking about if the trade would result in shedding thousands in interest and fees. 

Refinancing a Title Loan

If you took out a title loan because of the convenience of fast cash, you may be able to refinance once you have some breathing room. Fixed-rate loans from a bank or other type of lender may prove less expensive than the perpetual interest rates owed on a rolling title loan. 

Alternatively, a convenience check from a credit card company may work in your financial circumstances. The risk with this option is ensuring that you pay off the check before the end of any promotional period. The upside is, you get the title of your car back after paying off the title loan. 

Negotiating with Title Loan Lenders

One of the options that many debtors in Georgia avoid is negotiating with the title loan lender. Be upfront about your finances with the lender. If there is a risk of you becoming insolvent, the lender may prefer to agree to terms that mean they continue to receive some form of payment. 

Positives that may come from negotiation include lower interest rates and monthly payments. On the flipside, this type of agreement will negatively impact on your credit score. The alternative is defaulting on payments which will lower your credit score, although you could use the additional money in your budget to regain financial footing. 

Filing Bankruptcy

You may want to consider filing bankruptcy if title loan debt is crippling you financially in Georgia. However, special rules may apply to your title loans in bankruptcy.  You need to understand all of your options when dealing with title loans.Speak to the experts from H. Lehman Franklin P.C. for advice on debt and bankruptcy. You can reach our offices on 912-764-9616 or email at today for a consultation.