How to Get Out of a Title Loan and Avoid a Repossession

Step 1

Calculate how much you need to pay off your car title loan in full by its due date. This is the balance of the loan plus any accrued interest or fees. By coming up with this much money, you can pay off the title loan in full rather than rolling it over to another month and paying the additional interest.

Step 2

Apply for a personal loan at a bank or credit union for that amount. A personal loan has a much lower interest rate than a car title loan and allows you to stretch repayment over a longer time period.

Step 3

Ask a friend or family member with good credit to co-sign the personal loan if you cannot qualify on your own or if the interest rate is too high.

Step 4

Take a cash advance on your credit card if you cannot get a personal loan and already have a card with enough available credit.

Step 5

Use the personal loan or credit card cash advance to repay the car title loan and keep your vehicle.

Step 6

Make regular payments on your personal loan or credit card to repay the money you borrowed. The larger your payments, the less interest you'll pay.