Taking a title loan is indeed much easier than paying it. Many people lose their possessions as they cannot repay the payment on time. Getting a title loan is a quick and easy way to get through a financial emergency. However, only if you can refund money in the agreed time.

So, how to get out of a title loan without losing your asset, such as a car? In this guide, we’ll tell you how to return your amount and come out of the title loan legally. There are many other ways to pay better than losing your asset. So if you’re in such a situation, these ways may come in handy:

Renegotiate your terms

The first step before trying other methods is to try to renegotiate your terms. Don’t ignore the lender, as this will likely make you lose your car.

If you’ve missed several repayments already, your lender might reduce the interest and fees. This could help a lot in reducing the total loan amount that you need to repay.

Many borrowers believe this would never work. However, it’s worth trying. As an old saying: “If you don’t ask, you don’t get.” After renegotiating your terms, you will now have a better idea of how much money you need to pay it off in full.

Refinance or Consolidate

Another way to get out of your title loan is to replace it with a different loan. Yes, this won’t solve the main problem of being short on cash. However, a fixed-rate loan from a bank or online lender may be less expensive than rolling your title loan month by month. As long as you’re sure that you’ll pay it off before due dates, it can reduce your costs.

Suppose you’re having trouble getting bank loan approval. In that case, you can visit your local banks and credit unions, where you’ve got a better chance of qualifying. Paying off the title loan also lets you get your title back.

Swap out the car

Instead of defaulting on your title loan, you can sell your car and pay off the title loan. You can buy a less expensive model with the remaining money. Since your lender has your car’s title and copy of the keys, it might be tricky to find a legit buyer. However, it’s still possible. This option will work best if you’ve got a newer car. You can even sell for a profit, and the amount you receive will be much higher than what you owe the lender.

Regardless of your car’s model, downgrading your vehicle could save you hundreds or thousands in interest and fees.


Your best bet is to avoid borrowing loans unless you’re confident about their repayment. It’s also important to know how title loan works before applying for it. In any case, build up an emergency savings fund and improve your credit so that you’ve more options when you need to borrow.