One thing that you may not realize is that your creditors don’t actually want your stuff. The bank that holds your mortgage does not want to take your house. The lender who has your auto loan does not want to repo your car. Most lenders, be they for home, auto, or credit card, just want you to make an agreement with them that you can keep.
If you stop making your car payments, your lender is going to lose money. They will have to go to the expense of repossession and then finally sell the car for a loss at an auction. If you keep this in mind, it makes sense that the lender would rather negotiate with you, instead of going to all that trouble. Here are 3 ways that you can get in front of your credit problems, and hopefully save your car from repossession.
1. Improve your cash flow with a debt consolidation or debt settlement program. You might find that you can catch up on your car payments, if you improve your cash flow through a debt consolidation or debt settlement program. If you have other debts that you are struggling to pay, a debt consolidation or debt settlement program can be a first step toward debt relief.
Contact a debt relief specialist now.
2. Make a budget. Before you try to come to an agreement with you auto loan lender, have your facts straight. You don’t want to fail if you go to the trouble of negotiating a way to keep your car. There are a number of templates you can easily find online that can guide you. When you talk to the lender, know exactly how much you can pay towards the car.
3. Talk to your auto loan lender. With budget in hand, call and talk to your lender. Let you lender know that you do not want to default. Be honest about your situation and realistic about your budget. The lender may have to go through standard debt collection procedures at first, but if you are patient, you will hopefully be able to negotiate a change in monthly payment that you can afford to maintain long term, and save your car!
by Ethan Leak