Auto loans are part of life in Canada. We need a car to get around and most of us will need help affording that car. That’s where the car loan comes in. But what if the loan was affordable when you got it but isn’t affordable now? What can you do now that you’re in an unaffordable car loan in Port Colburn?
As Port Colburn auto loan experts, our team has a range of practical suggestions that might help.
We offer a range of options that could help with you’re unaffordable car loan in Port Colburn. but there is one thing everyone should do. Take action before you miss a payment.
Missing a debt payment will seriously impact your credit score. It can also change the way the lender views you as customer.
Talk to the lender before you miss a payment and you’re a valuable customer trying to do the right thing. Talk to them after you miss a payment and you’re viewed very differently!
Tell your Lender About your Unaffordable Car Loan in Port Colburn
If you’re in genuine trouble and are at risk of defaulting on the loan, talk to your lender beforehand. There are many things they can do to help, including changing the term and temporarily offering lower interest.
If you’re in real trouble, you may even be able to negotiate down the entire loan!
Refinance the loan
If your situation isn’t quite so serious, you could refinance the loan. You could take out another loan to pay off the first using equity in your car to lower the amount, or a longer term to lower the monthly repayments.
Auto loan refinancing doesn’t work in every situation but it can be very effective if you can take action before you miss a payment.
Take a payment holiday
Most lenders will allow you to take a payment holiday of between 3-6 months if you need to. They suspend the loan payments for that period and add them onto the end. You’ll still be charged interest for that time but any payments you need to make will be a fraction of normal.
These are useful if you’re in a temporary situation like furlough, temporary illness or something like that.
Early loan settlement
If you have the cash, you could just settle the loan early. While this requires significant savings, if you have it around and want more cash each month, this is the way to do it.
The vast majority of Port Colburn auto loans will allow overpayment or early settlement and if you have the resources, this is an effective way to handle things.
Sell the car
We appreciate that selling the car is less than ideal but it’s better than missing a payment.
Depending on your situation, you could sell the car and settle the loan. Use whatever’s left over to buy a cheap runabout until you’re back in control.
We appreciate it might be a step down from what you’re used to but it’s a far more palatable outcome than missing the payment and taking a hit to your credit score!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!