Paying Back Your Loan – How Prepayments Work with Title Loans
When you get an auto title loan in California, your loan terms will determine your monthly payments and the length of time in which you have to pay back the loan. LoanMart’s terms, for example, range from 12 to 48 months.
So you got the loan, took care of whatever your financial need was, and now you’re back on track. You’re able to make your monthly payments and, hey, you even have a little pocket money!
Have you considered making bigger payments toward your auto title loan?
You’ve agreed on loan terms that work for you and allow you to make your payments comfortably each month. Why would you make larger payments? Well, paying out more dollars now may actually save you money later.
“All of that’s well and good,” you may be thinking, “but where am I going to get the money to make those extra payments?”
Only you know if it’s possible for you to make extra payments toward your auto title loan each month. No one can tell you to pay more than your terms require. However, as any financial advisor will tell you, successful savers pay themselves first.
What can you do to pay yourself first?
- Cut out your extra expenses. Go through your expenses and make sure you’re not paying for services or products you don’t use or can live without for a short time. You know the kind: an unused gym membership; cable service; video or magazine subscriptions.
- Limit discretionary spending until your loan is repaid. If you really want to pay back your loan early, saving yourself money, you may have to do things like not eat at restaurants as often, brew your coffee at home, and wait until that big-budget movie comes out on DVD.
- Allocate a percentage of your income toward your auto title loan payments. If you do this right away, such as through an auto-pay or auto-transfer option, this will help eliminate the temptation to spend extra income on something else besides your monthly payment.
In the end, it’s your money and you know what’s best for you and your family. However, the fact is that a little sacrifice now may mean easier living in the future.