You may even have money left to put toward a less expensive car. Clinton M. Sandvick worked as a civil litigator in California for over 7 years. "CFPB Finds One-in-Five Auto Title Loan Borrowers Have Vehicle Seized for Failing to Repay Debt. Made this difficult process much smoother, Upsolve's nonprofit tool helps you file bankruptcy for free. Another way to get rid of your title loan is to replace it with adifferentloan. Second, you need to make sure that you are not liable for any remaining balance on the loan. Title loans are also riskyyou can potentiallylose your car, making it hard to get to work and travel safely (unless you have reliable public transportation). Title loans have short terms, often only 15-30 days. since early in the COVID-19 pandemic, so you may be able to sell your car and get enough to cover your loan in full. To illustrate, let's use the prior example of an $800 loan with 25% interest over an initial 30-day term. Offer pros and cons are determined by our editorial team, based on independent research. Personal loans to pay off credit card debt. Should I File for Bankruptcy for Credit Card Debt? You may even have money left to put toward a less expensive car. However, this does not influence our evaluations. A voluntary surrender will stay on your credit report for seven years. This information may be different than what you see when you visit a financial institution, service provider or specific products site. A voluntary surrender can also affect your credit score. Different states regulate title-loan companies in different ways. Read or contribute to the latest legal news in. Your APR will be based on the amount borrowed, the monthly interest rate, the fees you must pay, and the duration of the loan. When you surrender the vehicle, you return it to the lender on much more positive emotional terms, usually during business hours. What Are My Rights Under the Military Lending Act. If you are currently using a non-supported browser your experience may not be optimal, you may experience rendering issues, and you may be exposed to potential security risks. It can help you avoid personal liability for adeficiency judgmenta legal judgment declaring you must pay the difference between the value of the car and the amount you still owe on the car. Car title loansare like comfortable beds: Theyre easy to get into, but you eventually need to get out. As of February 2022, a Nevada state-wide database check is required as a condition to getting a title loan or high interest loan in Nevada. But DMP participation may indirectly affect your score by reducing your available credit. If youre thinking about refinancing your car loan, here are a few things to keep in mind: -Your credit score will play a key role in determining your interest rate. If you extended that loan for another month, at the end of the additional 30 days you would owe $200 more in interest, for a total balance of $1,200. It can also cause you to pay more for car insurance or other types of insurance. Some of the offers on this page may not be available through our website. Can I give my car back to the finance company? The final option is to declare bankruptcy. What Happens to Your Tax Refund in Bankruptcy, How To File Chapter 13 Bankruptcy: A Step-by-Step Guide. The lender may have already taken it back if you stopped making payments. Rolling over a previous title loan into a new loan takes even less time. What Is Chapter 7 Bankruptcy & Should I File? This can be difficult if your credit score has decreased since you took out the original loan. Your email address will not be published. Lead Assigning Editor | Personal finance, credit scoring, debt and money management. Sent from my iPad3 using Tapatalk HD. from the University of Maryland Francis King Carey School of Law. Refinancing your car loan can help you lower your monthly payments and get your debt under control. This increases your risk of repossession. You could use websites or social media to sell your property, or you could take the more traditional route and have a garage sale or yard sale. The lender may then sell the car and apply the proceeds to the amount you owe on the loan. Sell your car. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/a\/ac\/Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg\/v4-460px-Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg","bigUrl":"\/images\/thumb\/a\/ac\/Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg\/aid1410081-v4-728px-Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"