Yes, I should move to a new car title loan because Your car title loan is a simple interest loan. You can pay off your loan anytime. You will only get charged interest on the principal balance of your loan unlike compound interest loan that charges interest on your principal balance plus any unpaid interest. My nephew got a title loan. The vehicle is not repairable, and he cannot make the loan payments since he has no transportation. He called them and told them he is going to give up his title and they can have the car. They told him they don’t want the vehicle — they want the money. Again, he told them he cannot make the payments, but still they want their money. They are calling him and all of his references. He has told them he is giving up his title and to stop calling him and his references, but they won’t do it. Is there a resolution to this problem? He simply cannot pay them. No
matter how this gets resolved, I hope he can come away from this situation with some new knowledge about impulse buying, doing his research before he buys and knowing what he can realistically fit into his budget.
Title loans are marketed as small emergency loans, and you turn over your car title and an extra set of keys as collateral. A typical car title loan has a triple-digit annual interest rate, requires payment within 1 month and is for much less than the value of the car.
The bad news is, for now, your nephew’s title loan is legal and binding, unless he’s in the military. Several years ago, the Department of Defense outlawed title loans for service personnel because of abuses and nosebleed interest rates. But if your nephew is not serving in uniform, he does owe the money and will have to pay it back.
Also Read : https://www.creditkarma.com/auto/i/refinancing-car-loan/