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Penalty for paying off personal loan early

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Penalty for paying off personal loan early

Your car title serves as collateral for the loan. Meaning the lender has the option of taking your vehicle away if you dont repay the loan. This is the biggest risk of this kind of loan.

Having a car repossessed would make anyones life more difficult. With these loans, you dont just risk losing your car, truck or motorcycle. You also agree to pay extremely high interest rates and steep fees.

And in Texas, there are few regulations or laws to keep lenders from charging these excessive fees. The average APR for a title loan in Texas is between 243-289 and they usually last between 30-191 days. (5) Making it tough to pay the loan back on time, if at all.

But there are alternatives in Waco and you dont have to settle for these risky loans.

Penalty for paying off personal loan early