Use Your Tax Refund To Clear Up Your Car Title Loan Debt

If you have a car title loan out and have been paying the fees each month without making much of a dent against the principle balance; make good use of your tax refund and clear up that debt. As much as you might like to take an extra vacation or purchase that new wide screen television, it may help you more in the long run by getting rid of debt which eats away at your hard earned income.

Besides being secured by the pink slip, a car title loan will charge a large percentage of interest towards any remaining unpaid balance once your original payoff date passes. Each month that passes will accrue another chunk of cash added to the balance that you will be responsible for paying. Without paying your fees each month, you run the risk of losing your vehicle. Car title loans can create a hostile financial situation if you cannot afford to pay it back in a reasonable time.

A tax return provides extra money which is not otherwise budgeted for everyday costs. If you have one of those returns which has been inflated by tax credits, then you will have access to money to pay down or even pay off the balance.

As exciting as it would be to plan that dream vacation right away, you don't have to put it on the shelf indefinitely. Once your title loan is paid, you can put the money dedicated to that bill and save it in order to pay your vacation in full. What a great vacation you will have when you know that upon your return there is no debt for it. The less debt you pay each month, the more you save on interest payments. Look on the bright side, if you didn't get the tax return at all, your title loan would still be eating way at your paycheck and potentially causing additional problems from other budgeted areas.

Atlanta Title Pawn offers title loans for customers in the Metro-Atlanta and surrounding areas.

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