Can I go to Jail over an Unpaid Car Loan?
For many people who have to choose which bills to pay each month, the first bill that gets paid is their car loan. Vehicles are a huge investment, and most people rely on them in order to get to work and earn the money they need to pay their bills. That’s the main reason why falling behind on a car loan is such a big deal, late payments can lead to the car being repossessed.Once the car is gone, however, there isn’t a lot of incentive to keep paying the loan. Often, people have moved on to prioritizing their next car loan in order to make sure that they don’t lose their current vehicle. For this reason, most debt collectors for old car loans resort to threatening their clients with things that just aren’t true.One of the most common threats is that they will put a borrower in jail for not paying his or her old car loan. While it is true that even if the car was repossessed, stolen, or otherwise destroyed that you still owe the balance of the loan, it is not true that a collection agency has the authority to put you in jail. The United States simply does not put people in jail for owing money to a private company.This doesn’t mean that this unpaid balance isn’t a problem, however. Because the debt is so large, vehicles loans are much more serious than an old credit card debt. It is much more likely that a bank will decide to pursue wage garnishment for a car loan. They will also take steps to insure that the debt shows up on your credit report.That means that if you owe a debt like this, you have to take care of it. Too many people discover too late that an old vehicle loan is coming back to haunt them years after the car was taken by the bank or sold to another person. If you can’t pay off the balance of the debt, then it’s time to consider a debt consolidation loan.
These loans can combine this old debt with any other existing debts that you have, including credit cards, medical debt, and student loans. Instead of paying a lot of money, you’ll make a small monthly payment that will fit into your budget.