Title pawns are meant to be 30-day, short term transactions but they do not have to be repaid within the first 30-days. Paying your title pawn back within the first 30-days would be the least expensive cost of borrowing for your title pawn.
When you receive your title pawn from Panhandle Title, your first payment will be due 30-days from the date that you receive your check for your title pawn. When your due date is here, you will be required to pay at least the minimum payment of the interest accrued to extend your title pawn for an additional 30-day period. Paying the minimum payment will only pay the interest accrued on your title pawn and will not reduce the total amount owed to pay your account in full, it will just extend the title pawn for an additional 30-day period.
Every 30-days, when your payment is due, you essentially have 3 options to keep your account in good standing. Failure to make at least your minimum payment every 30-days, on your due date, could result in the repossession of your vehicle, based upon your contract with Panhandle Title.
Option 1: Pay your title pawn in full within the first 30-days
When your payment is due, the long-term, least expensive option that you have is to pay your account in full. If you qualified and received our 30-days interest free promotion when you opened your title pawn with Panhandle Title, we will waive the accrued interest on your title pawn, and you pay your account in full for the principal balance plus lien fee charged by your state to secure the lien on your title and no interest will be charged. If you do not have the 30-day interest free promotion on your title pawn, you will pay your principal balance and the accrued interest on your title pawn to pay your account in full. Your lien will be released, and the title will remain electronically held in your state, if your title was liened.
Option 2: Pay your minimum payment to extend your title pawn for an additional 30-day period
When your payment is due, you can pay your minimum payment of your title pawn to extend your title pawn transaction for an additional 30-day period. Only paying the minimum payment on your title pawn will only cover the accrued interest on your title pawn to extend it for another 30-day period and your payoff on your title pawn will remain the same as only paying the minimum payment does not reduce the amount that you owe to pay your title pawn in full.
Option 3: Pay more than your minimum payment to reduce the balance and extend your title pawn for an additional 30-day period
Paying more than your minimum payment will allow the additional amount paid over the minimum payment to reduce the outstanding principal balance on your title pawn and in return, reduce the amount of interest and the payoff of your title pawn for the following 30-day period. We always recommend that customers that are unable to pay off their title pawn within the first 30-days, pay more than their minimum payment to reduce the interest accrued on their account for the consecutive 30-day periods as well as the amount that is owed to pay their account in full.
With Panhandle Title, it is always up to the customer on how they pay back their title pawn, keeping in mind that failure to pay at least the minimum payment every 30-days could result in the repossession of the collateral for your title pawn with Panhandle Title. As long as you are making at least your minimum payment every 30-day period, your account will remain in active, good standing.
Call our friendly staff at (850) 785-2274 for any additional questions that you may have regarding a title pawn with Panhandle Title! We look forward to assisting you!