Pay Back Your Auto Title Loan Ahead of Schedule
When you choose to pursue an auto title loan, you can choose one of three payment plans that best works for your individual needs.1 Whether you choose to pay off the title loan over 36 months or 12 months, you get the advantage of refinancing options and the support of a dedicated team of auto title loan agents.
Sometimes you do not need the full amount of your loan to take care of the financial challenges you faced when you chose to obtain an auto title loan. If this is the case, you should consider shortening the length of your payment plan by making larger payments on your current loan term until it is paid off.
Unlike some other lending services, auto title loans in Phoenix do not entail prepayment penalties, which is just another unique advantage customers get with an auto title loan.
How Can I Ensure That I Stay Ahead of My Auto Title Loan?
When you are managing an auto title loan, being vigilant about your finances is the best policy to ensure that you can make early payments. We recommend making a plan for your personal finances during the life of your auto title loan and cutting back on excess expenses so that you have the best chance to make payments ahead of schedule.
Here are some items that other people have cut back on to be successful with their loan:
- Eating at restaurants and going out for drinks
- Going to the movie theater
- Magazine subscriptions and online TV services
And here are some of the activities that have helped people make early payments:
- Setting aside a dedicated amount of each pay-period to help with loan payments
- Writing out a plan ahead of time to stay on track with your payments
- Choosing a loan term duration that is best for you from the beginning
Early payments are just one benefit of an auto title loan. It gives qualified customers the freedom they need to take care of the unexpected expenses in life.
The Benefits of Early Payments
Making larger payments in the short term can actually help customers save money down the road. Once you have taken care of the financial challenges in your life, it makes more sense to pay your loan off ahead of schedule.
Here’s why: The longer the life of your loan, the more interest you will pay. Your interest is calculated against the principle balance of your loan, which is the amount of money you borrowed minus any payments made toward that balance. Generally, extra payments go toward the principle balance, meaning you’ll low less in interest. If you continue to make extra payments each month, the principle balance dwindles more quickly and the interest you owe dwindles along with it.
Auto title loans are unique in this regard as many other loan types prevent early payments in order to get the full amount of interest. Companies like LoanMart work to your benefit, providing great options throughout the life of the loan and giving you the freedom to utilize your loan as it works best in your life.