Kansas City car title loans are short-term secured loans. The amount you can receive is based on the equity in your vehicle and what you can afford to repay, not your credit. Despite its short-term nature, a Kansas City car title loan may have a term of anywhere from one month to years. As with any loan, you have the option of following your payment schedule — whether it is bi-weekly or monthly payments — or working to pay off your loan early.
Unfortunately, not all car title loan providers are equal.
Some car title loans penalize borrowers with a fee for making additional payments or paying more than the minimum due. Some even have balloon payments that make it almost impossible to pay off your loan fast. As you shop for a car title loan, it’s important to choose a lender like Waldo Financial that values customer service and allows you to repay your loan early without penalizing you. After all, you shouldn’t be forced to pay a fee for being financially responsible!
If you don’t get a car title loan with a prepayment penalty, there is one major advantage to repaying your loan quickly: you can save a substantial amount of money by reducing the interest you need to pay. Paying off the loan ahead of schedule also frees up more of your money each month so you can start building an emergency fund to plan for life’s surprises in the future.
There are several steps you can take to repay your loan early with additional monthly payments or paying more than the minimum due. Here are some tips:
- Reduce your expenses. You probably have many expenses that are slowly draining money from you each month. Do you stop for a morning coffee? The average person who buys coffee regularly spends $36 a month. You may also have a gym membership you don’t use to save about $35 a month. Switching from cable to a streaming service like Netflix can also save you around $50 per month.
- Save 10% from each paycheck. The easiest way to pay off your loan is putting aside 10% of every paycheck toward an additional monthly payment.
- Pick up a side job. If you’re serious about paying off your loan fast or getting debt-free completely, consider a side job. You may be able to sell produce at the farmer’s market, cut grass on the weekend, or babysit kids to earn extra money.
The best way to get your Kansas City car title loan paid off quickly and save money is working with a reputable title loan provider like Waldo Financial that offers flexible terms that work best on your schedule. You may be able to change the terms of your loan as well to switch from monthly payments to bi-weekly payments. Even if the payment amount each month is the same, your loan will still be paid off early because some months have five weeks.