| Hard financial times happen to even the most | | | | more than willing to assume the remainder of |
| frugal, budget conscious consumers. If you've | | | | your loan. |
| been able to save money properly, then it may | | | | Sell Your Car |
| be possible to see yourself through the financially | | | | If you can sell your car for the amount remaining |
| lean times of your life. Credit repair or | | | | on the loan, then this may be a viable option. If |
| bankruptcy may also help your situation. But | | | | your sale price falls short of what you still owe |
| what happens when you become completely | | | | then you'll have to pay the remainder out of |
| overwhelmed and simply can't keep up with your | | | | pocket. Unfortunately anything that you paid on |
| car loan payments? | | | | the loan until this point will be lost along with the |
| There are numerous options for Americans who | | | | car itself. |
| are faced with mounting debt and not enough | | | | Voluntary Repossession |
| income to cover the costs of their monthly | | | | Basically this is turning the car in to the lender so |
| payments. Some are obviously better than | | | | that they may sell it at auction. You'll still be |
| others, it's going to depend on your specific | | | | responsible for any money not recovered by |
| situation. | | | | selling the car, and the lender will expect you to |
| Refinance Your Current Loan | | | | pay that off. Again, this will require that you |
| This is probably the best option but requires that | | | | contact your lender to see if you can work |
| you have a strong credit profile. Your credit | | | | something out with them to reduce that final |
| scores may need to be significantly better than | | | | balance. |
| they were when you first took out your car loan | | | | Involuntary Repossession |
| if you expect to lower monthly payments by | | | | This is what every car buyer that can't make |
| reducing you interest rate. You also may be able | | | | their payments fears; when the repo man comes |
| to lengthen the terms of the loan, which ends up | | | | to take your car away. By far, this is the worst |
| being costly in the end, but may be good enough | | | | option. The fees to get your car back, assuming |
| to keep the car in your possession. | | | | that you can, are excessive. Even if the lenders |
| Modify Your Current Loan | | | | sell the car you'll be charged with any associated |
| This involves speaking with your current lender. | | | | fees. Avoid repossession at all costs. |
| Depending on how long you've been paying off | | | | Bankruptcy |
| the loan, your credit profile, other business you | | | | You'll need to contact a bankruptcy lawyer to get |
| may currently have with the lender, among other | | | | an idea of the laws for your particular state. It's |
| factors, the lender may be willing to work with | | | | possible that filing for bankruptcy can stop you |
| you if it is just a matter of a temporary financial | | | | car from being repossessed. If that has already |
| problem. They may be willing to take smaller | | | | happened, it's also possible that a bankruptcy can |
| amounts for a few months or even allow you to | | | | include the remaining debt that you still owe on |
| miss a payment that would be added on the back | | | | the car loan. |
| end of the loan. Again, you need to speak to | | | | Talk To Your Lender |
| your lender to see what options are available to | | | | Let them know your situation and perhaps they'll |
| you. | | | | be willing to work with you. You can't know until |
| Have a Car Buyer Assume Your Loan | | | | you ask. However this should be the first step |
| This option is difficult because not only does your | | | | after you realize that you simply won't be able to |
| car loan need to be assumable, but the buyer | | | | make your monthly car payments. Hopefully the |
| would need to meet the lenders qualifications. | | | | problem was just temporary and you'll be back |
| However if you've negotiated a good interest | | | | on your feet in no time. |
| rate for yourself, then a potential buyer may be | | | | |