Paying bills is not always easy for some people. Some bills can be put off for time before consequences occur. There is usually a long process for bill collectors to take in order to go through the collection process. Payments for car loans are a little different. You can be considered in default of your loan if you are a day late on your car payment. Lenders don’t act on that, but they will if you are extremely late. Lenders never look forward to taking a car away, they would rather you make your payment so that you can keep your car and finish paying your loan. They are also known for being flexible with you for making your payments if needed, They will give you at least a few months to catch up. Here are a few suggestions when faced with this problem:
Adjust your bills and financial priorities: Go over your monthly budget and see which expenses you can cut back on. Consider working more hours at work so that you can bring in more money and at the same time save more money because your spending more time at work.
Ask the finance company for a grace period: Contact your finance company as soon as possible when you know you are not able to make your monthly payments. There could be a grace period before they consider payments to be late payments. If this is your first time paying late they may even waive late fees because of your history of paying on time. They may even be able to defer your payments.
Switch to a lower interest loan: People normally stick with the financing offered at the car dealership. When this is done , you can still look elsewhere at anytime for a better loan. Find one at a lower rate to reduce your car payments. You should consider using a home equity line of credit because you may get a better rate.
Get rid of the car if last resort: The finance company may refuse to except late payments or not work with you and ask for the car back, then so be it. You can voluntarily return it which is better than things getting out of hand and them having to come pick it up. Repossession fees which they will change you for.