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Toodle-oo Title Loan Torture

January 22nd, 2015 at 07:41 pm

It was just after the New Year that I got an updated statement from the title loan company and I was happy to see that the balance was finally under $500. On my next paycheck I sent them a final payment and thought good riddance. They will forward my title as soon as they have removed themselves as lien holder and I will go back to owning my vehicle outright. This debt is finally dead and this experience (life lesson?) will never be repeated. The final numbers are as follows:

Amount Financed $3090.00

Amount Paid $9983.35

Yes those numbers are daunting, but as I mentioned in a prior post part of the reason the amount paid ended up being so high was because I wound up paying late or making partial payments on so many occasions. When that happens generally they apply payments to late fees, finance charges, and interest before going anywhere near the principle just like most other debts. That is also how they make their outrageous profits, much like payday lenders.

Thinking back to the dire circumstances that led me to get this loan in the first place leaves me with mixed feelings. I did have to deal with that situation and at the time there were no better financial options available so I cannot say I regret doing it. However, I do regret not having educated myself earlier on about how to put myself in a better financial position so that the odds of me going this route were significantly reduced. Oh how grateful I am to be doing things differently going forward.

While I am happy to be done with this debt I think I expected to feel differently when it was over. This frees up so much income to throw at other debts and savings and I guess I expected to feel more inspired to pursue those goals. Instead I just feel kind of flat and like doing nothing. That is not realistic and I will not actually do that, but I am surprised to feel that way.

8 Responses to “Toodle-oo Title Loan Torture”

  1. Petunia 100 Says:

    Maybe it just doesn't feel real yet? Maybe it will really hit you when you receive your pink slip in the mail, or next month when you don't have to make that payment.

    It's wonderful progress, congrats Little Miss Splendid! Smile

  2. VS_ozgirl Says:

    Congratulations on being free of your debt and being free to move forward to put your money to a way better place! Give yourself a short amount of time to feel flat & then start thinking of doing bigger & better things, you are not where you were anymore, you're doing great Smile

  3. Joan.of.the.Arch Says:

    I kind of know what you mean. Even when we paid off the mortgage I didn't feel a triumphant high. It would have been nice, but it seemed ho-hum. Still, I'm glad it it done, just as I am happy for you that you got this title loan off your back....So what is on the debt chopping block next? Wink

  4. LittleMissSplendid Says:

    I think maybe you guys are right that it doesn't feel real yet, but I'm glad its over. I'm also still struggling to get used to making more money in the first place. I have enough now to cover regular expenses, attack debt, save, and still have money left over so paying off a debt and freeing up even more money is just kinda weird.

    What's next on the debt chopping block? Hmmm. I have a few debts that are under $500 that I think would make sense just to pay in full. I'm leaning toward negotiating a payment plan on the larger ones while I do that.

  5. LuckyRobin Says:

    I've had this happen twice to me, once when I paid off the credit cards, and once when I paid off the mortgage. I think it is because when you are paying it off you are focused and striving for a goal and then once you've done it you're just kind of at a loss for what to do now. It's like a let down, almost. I've found setting more goals and focusing strongly on one helps you get back into the spirit of it.

  6. snafu Says:

    Wow! I think the sweeping changes you have made in a very short time frame is downright phenomenal! Having paid and out of a total of... $6,868.32 in fees, interest and late charges on your initial loan lets you make decisions on where to allocate a major chunk of your money. You may feel 'meh' about it today but it will seem a lot more real next pay with money allocated elsewhere. As each debt clears you will be a stronger financial manager. We're all delighted to cheer you on, every step of the way.

  7. LittleMissSplendid Says:

    What's hilarious and frightening is that about half the fees, interest, and late charges were paid when I was struggling on unemployment or underemployed. If I hadn't landed my new job when I did I would still be getting nowhere on this loan and feeling like I was slowly drowning. I'm grateful, I am, but its hard to get used to the pace of change with all this. At this point I feel like I'm just going through the motions in terms of debt repayment, which is way better than doing nothing but kinda strange.

  8. FrugalTexan75 Says:

    Give yourself a little time to adjust to not having this hanging over your head anymore. In a bit you'll feel the joy of having that money to play with in other categories (paying off debt, etc)

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