If you’re like many people, your car is the most expensive thing that you own. It’s probably also the only way you have of getting to work and/ or school. That’s why when you fall behind on the payments it can be terrifying to hear that the bank is about to repossess your car.Fortunately, there are things you can do even if you can’t afford the payments anymore. To start, talk to the bank and let them know your situation. Sometimes it’s possible to negotiate
a loan modification in which you agree to lower monthly payments in exchange for a longer loan term. Typically, this is a viable option if you owe less on the car than it is worth and you have reasonably good credit.If you’re still upside down on the vehicle, however, you’re going to need to come up with a way to make the payments you have now. One option that can work is debt consolidation. While it is possible to include your car loan
in a debt consolidation loan, many times people choose to consolidate their other debts and use the savings to make the payments on their car loan.If you have hit a financial rough patch and your inability to pay your car loan is only temporary, debt consolidation
is probably your best option. You’ll have a lower payment while you’re working to get back on your feet, then once you’re back on track you can start making extra payments to get the loan paid off quickly. If you’re facing a more permanent situation, the debt consolidation loan will permanently lower your debt payments, making it easier to pay everything off.
Best of all, you get to keep your car and the calls about repossession will stop. You can wake up every morning knowing that you have a way to get to work or school that no one can take away from you. Furthermore, you’ll save a lot of money, possibly improve your credit score, and get your finances back on track.