Lost your job with a title loan? Here’s what to do first.

If you just lost your job and you have a title loan, do three things this week: apply for unemployment benefits, call your title lender before the next due date to explain what happened and ask for a short-term arrangement in writing, and build a bare-bones budget that keeps a roof over your head, the lights on, and the car insured. Once those are done, take an honest look at the loan itself and what options you may have. This guide walks you through each step, who to call, and how to protect the car while you get back on your feet.

You’re not alone

Losing a job is one of the most common reasons a manageable loan suddenly isn’t. The Federal Reserve’s report on household finances in 2025, released in May 2026, found that 7% of adults were laid off during the year, up from 6% the year before, and 42% said finding or keeping a job was a concern. For title loan borrowers, the car is often everything: the Pew Charitable Trusts found that about one-third of title loan borrowers have no other working vehicle in their household. If that’s you, the fear of losing the car right when you need it for interviews and a new job is real. It’s also something you can plan around, starting today.

Your first week: step by step

1. Take a breath, and don’t go silent. The worst thing you can do with a title loan is stop answering calls and hope it sorts itself out. Lenders have more room to work with you before a payment is missed than after.
2. Apply for unemployment benefits. The Texas Workforce Commission says to apply for benefits as soon as you are unemployed, but not until after your last workday. You can apply online through Unemployment Benefits Services, in English or Spanish, or call a TWC Tele-Center at 800-939-6631. Your claim starts on the Sunday of the week you apply, so don’t wait.
3. Find your title loan due date and payoff amount. Pull out your agreement. Write down the next due date, the payment amount, and what it says happens if a payment is late. Ask the lender for your current title loan payoff amount so you know the real number.
4. Call the title lender before the due date. Explain briefly: you lost your job on a certain date, you’ve applied for unemployment, here is what you can pay now. Ask about moving the due date, a smaller payment for a set number of weeks, or waiving a late fee. The CFPB’s advice for car loans applies here too: contact your lender as soon as possible and get any agreement in writing.
5. Keep the car insured. It’s tempting to cut insurance first. But the car is how you’ll get to interviews and a new job, and it’s the collateral on your loan. The CFPB’s budgeting tool lists car insurance and transportation to work among the bills to protect.
6. Build a bare-bones budget. See the box below.
7. Call your other bills, too. Landlord, utilities, phone. The CFPB notes that many companies have given payment flexibility to people going through a hardship, and that dialing 2-1-1 can connect you with local help.

Lenders have more room to work with you before a payment is missed than after. Call first.

A bare-bones budget for while you’re between jobs

When income stops, the order you pay in matters. The CFPB’s Your Money, Your Goals toolkit has a “Prioritizing bills” tool that asks you to weigh the risk of not paying each bill. It groups the bills to think about first like this:

Then list everything you can pause or cut for now: subscriptions, eating out, extra phone lines. Your title loan sits in the “obligations” group, and it’s also tied to the car you need to find work. That’s why the call to the lender in step 4 matters so much. For a deeper walk-through of juggling, read behind on a title loan and other bills: what to pay first.

Who to call

• Texas Workforce Commission: apply online or call 800-939-6631.
• Your title lender: before the due date, to ask about a short-term arrangement in writing.
• Your landlord and utility companies: to ask about a due date change or a payment plan.
• 2-1-1: to find local help with rent, utilities and food in your area.
• A nonprofit credit counselor: the National Foundation for Credit Counseling (800-388-2227) can connect you with a nonprofit counselor to help you build a plan.

Then look at the loan itself: refinance, buyout and other options

Once the first week is handled, look honestly at the title loan. If you’re on a single-payment loan and can only cover the renewal fee, every month you pay keeps the car safe but leaves the balance where it was. Our guide on why a title loan balance never goes down explains how to tell. Many people in this spot search for a way to refinance their title loan or for a title loan buyout. A refinance usually means another title lender pays off your loan and writes you a new one. A buyout means another company pays your current lender directly, the lender releases its hold on your title, and you then work with that company under a new written agreement.

Whether a refinance or buyout makes sense right after a job loss depends on your situation, including your income now and what you expect next. Sometimes the right move is to get through the next few weeks first; sometimes the loan is the thing that has to change. Nobody can promise you an answer before seeing your numbers, and you should be careful with anyone who does. If your hours were cut rather than lost, read what to do when your hours are cut and the title loan is still due.

Where ReDrive fits in

Losing a job is hard enough without the fear of losing the car too. Our team in Plano, TX works with people across Dallas–Fort Worth who are dealing with exactly this, and there’s no judgment here. Bring your title loan agreement and your payoff amount, tell us where things stand with work, and we’ll go through it with you honestly, including whether now is the right time to make a change. We’ll help you see what options you may have with ReDrive, including our title loan refinance & buyout program, with everything in writing.

Quick answers

What should I do first if I lose my job and have a title loan?

Apply for unemployment benefits right away (the Texas Workforce Commission says to apply as soon as you are unemployed, after your last workday), then call your title lender before the next due date to explain and ask for a short-term arrangement in writing. Keep the car insured, and build a bare-bones budget that protects housing, utilities, insurance and what you need to find work.

Will my title lender work with me if I lost my job?

Many lenders will at least talk about options if you call before the due date, such as moving the due date, a smaller payment for a few weeks, or waiving a late fee. Nothing is certain, so be honest about what you can pay, ask what any change will cost in total, and get the arrangement in writing.

Should I keep paying car insurance after losing my job if I have a title loan?

In most cases, yes. The CFPB’s budgeting tool lists car insurance and transportation to work among the bills to protect, and the car is both how you’ll get to a new job and the collateral on your title loan. If the premium is too high, ask your insurer about changing your coverage or payment schedule rather than letting the policy lapse.

Can I refinance my title loan or get a title loan buyout after losing my job?

It depends on your situation, including your income now and what you expect next. A refinance usually means another title lender pays off your loan and writes you a new one; a buyout means another company pays your current lender directly and you then work with that company under a new written agreement. Get your payoff amount in writing and talk it through before deciding; be cautious of anyone who promises a result before seeing your numbers.

This article is general information, not financial or legal advice. Programs, rates, and eligibility vary by lender and change over time. Always confirm the full terms in writing before you sign anything.