Your Questions About Title Loans

Lisa asks…

how to get out of title loans?

I took out a title loan for 2000 dollars 2yrs ago and have now paid back over 3000 dollars and the loan company is saying the money went to the principal and i still owe 2000 dollars. how do i get out of this?

barry0912 answers:

Tony:

The only way “out” of a loan is to satisfy the terms and conditions that you agreed to. When you took out the loan, you signed a promissory note – that’s where you’ll find all of the details of the agreement. If you signed it, you’re responsible for everything in there. If the loan contains unconscionable terms, you might have some recourse, but even then, you’d have to demonstrate that you were either incapable of understanding the terms that you agreed to, or that you had no choice but to accept the agreement.

The repayment schedule on your loan is determined by your interest rate, by the length of time that you have to repay, and by the amount of your monthly payment. If your interest rate is high, the repayment period is long, and your monthly payment is small, it could well be possible that you still owe pretty much everything that you borrowed.

The trick to repaying a loan quickly is to pay more than the minimum payment every month – that applies to credit cards, mortgages and any other type of borrowed funds.

I’m guessing that you misunderstood one thing that the lender told you – it’s unlikely that your payments went to principal, because if they had, you’d be in good shape. I think the payments that you’ve made have all gone towards some outrageous interest charge.

Just as an example, if you borrowed $2000 at 24% and made payments of only $41 a month, you’d wind up repaying almost $7700 and it would take you more than 12 years to repay the loan.

Get out the promissory note and check your interest rate and your payment term and your payment amount, and pay as much as you can. If possible, try to refinance this debt with a lower interest rate loan.

Good luck.

John asks…

Any one ever used Title Loans?

Has anyone ever used TURBO TITLE LOANS? It says they need a car title and a key. If it is online How do they get my car title and key? Also would they no if my car was broken? How?

barry0912 answers:

A car has to be worth at least $500 on the open market to qualify for title loans. A Salvage title is allowed. Customers will be asked about the current condition of the vehicle. The car needs to be running and in drivable condition, however, it can be in the shop in some cases. Previous clients have used title loans to pay a mechanics’ bill. This way, they get their repairs even when the repair shop won’t finance the bill.

Powered by Yahoo! Answers

Leave a Reply

Your email address will not be published. Required fields are marked *