The beauty of applying for a title loan in Utah is enjoying flexible payment options, and one of them is the interest-only arrangement. This doesn’t free you of your responsibility to repay what you owe. Rather, you’ll get the privilege to take care just your monthly payment’s interest, and not worry about the principal over a certain period.
Utah Money Center notes that generally, interest-only title loans in Provo, Sandy, Taylorsville, and Salt Lake City have two attractive benefits that magnetize borrowers:
Keeping Your Costs to a Minimum
Since the interest is your only financial obligation about during the initial period, your title loan wouldn’t bite into your savings for a while. This could offer you a huge relief if you have many bills to pay. Instead of shouldering all of your expenses at once, an interest-only loan can help you prioritize bigger and more time-sensitive debts.
Having More Cash in Hand
If you have less cash now but expecting more later, the chance to settle just your loan’s interest portion is perhaps the break you need. Having more cash gives you more financial flexibility, keeping you from acquiring new debts.
Calculate Its Risks
Despite its great advantages, interest-only title loans are not without risks. Realize that your bill will inevitably go up once your loan’s regular amortization schedule kicks in. At the point, your balance will still be the same. Ready yourself for a larger monthly payment you’ll then have to settle the principal and interest concurrently. If you’re financially unprepared, you could lose your vehicle if you fail to repay the loan in accordance with the contract.
An interest-only title loan can be beneficial, but it requires a lot of consideration. If you think that it’s not for you, explore other payment options that can better suit your needs and unique situation.