You don’t want your car repossessed, and, believe it or not, neither does your creditor. Repossession ruins your credit rating, and you will be responsible for repossession fees and the remainder of the car loan amount after the car is sold at auction. Here are some ways you can keep your car safe from the grasp of the Repo Man.
Devise a plan to get back on your financial feet and catch up on your car payments, assuming you want to keep your car. No matter the situation, take the steps necessary to get your finances stabilized.
Step2Contact the creditor(s) who loaned you money to buy your car to discuss the situation. Avoid hiding your car or not answering creditor phone calls. These evasive tactics may succeed in the short run but while you’re playing this Hide-n-Seek game with your car, you’re probably going to be extremely anxious about the situation.
Step3Ask your creditor about their willingness to work with you as you try to get your payments back on track. Prove a willingness to pay your debt by discussing the situation honestly and an ability to do so by getting a new job or asking a friend for a loan.
Step4Inquire if the creditor can reconfigure your loan. Sometimes your missed payments can be added to the end of a new loan. However, if you are fortunate enough to have a creditor who agrees to this, don’t mess up a second time. They won’t trust you next time.
Step5Consider selling the car. Even if by selling the vehicle you won’t raise enough cash to pay the full loan off, you can at least avoid the havoc and anxiety of repossession. If you do choose this route, it’s probably a good idea to inform the bank about your plans of selling the car. Perhaps once the car is sold, and you have paid the creditor the money you earned from the sale, the creditor will discuss how you can pay off the rest of what you owe them.
Step6Consider filing for bankruptcy if you have considerable debts beyond that of your car. However, since filing for bankruptcy is a drastic step that has long-term impact on your credit, choose this route only as a last resort.
Posted under General, Uncategorized
This post was written by Admin on September 23, 2008
