I wasn’t getting a lot of hours at work, and I decided to take out a car title loan, but now I’ve lost my job, and they want me to pay $200 worth of only interest before they will allow me to refinance the loan.
What can I do so they will work with me, because I don’t have $200, and I don’t currently have a job.
Yasmina
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You may want to consider having another loan company buy out the loan with lower payments. Or consider filing a CH 13 petition. Which will save your car.
Yasmina,
I’m sorry for your difficulty but your situation is quite common. You have a short term loan with your car as collateral and you owe $200. The lender is not likely to forgive any part of that $200 and is only likely to extend the loan if you come up with some cash and a plan to pay the entire loan off soon.
If you have no cash and no source of income you may have no way to even make an offer. At some point the lender is likely to repossess your car. You may want to ask the lender if you can sell the car and give them what you owe. Assuming the car is worth more than you owe you will at least get some cash from the deal. If they repossess and sell the car I would guess that you will get nothing. Since they have a lien on the car you will need to work with them to sell it.
Sorry there is not some magic way to escape this debt, but I think you need to focus on the best way to pay it off quickly.
Good Luck!
Mike Sullivan