Whether you are single, married, or have kids, your monthly car payment is your ticket to freedom and a fully paid-for car that can take you and the family from point A to point B. However, if you can’t fulfill your monthly obligations, this can easily turn into a financial disaster. One of the major ways of maintaining your financial situation is by paying your bills on time – not doing this will affect your credit score and limit how much credit you can get.
A few statistics
At the end of 2016, over 5 million people were late on their auto loan payments according to auto loan repayment data trends. The Federal Reserve Bank of New York also reported that over 7 million Americans were over 90 days late on their auto payments at the end of 2018. This just shows that you aren’t the only one having trouble making your monthly car payments. In this article, we will discuss some tips you can use to get back on track if you are behind on your car payments.
Talk to your lender early
As soon as you know that you will be behind on payments, it is important to call your lender. When you do this, it shows your lender just how responsible you are. Avoiding your lender is a no-no and just shows poor financial responsibility. You will get more choices (that will help your finances) from your lender if you contact them early.
Re-evaluate your car expenses
If you are struggling with making your car payments, it is essential that you evaluate your finances. There are a lot of expenses involved with having a car that go beyond monthly payments – there is insurance, maintenance, gas, and others. You shouldn’t be spending a large chunk of your salary on your car – that’s not good budgeting. If your monthly car expense is high, it might be time to reduce it. You can do this by lowering your insurance rate and managing some of the car’s maintenance on your own.
Change Your Payment Date
If the reason why you are constantly late on your payments is because of the payment date, you can ask your lender to change the date. You can request for it to be changed to after you get paid so you can budget properly and pay on time.
Find out Why You Are Late on Your Payment
Diagnosing the problem will help you understand the exact problem to face. Is your late payment a one-time thing, or is it recurrent? If it is a short-term issue of forgetfulness, you should try budgeting and automating your future payments. On the other hand, if it is a long-term or recurrent issue, you might have to start thinking about making big changes to your car expenses. One of which is determining whether you have equity or not – this way, you can know if you need a less-costly car or to refinance.
If you are having trouble with car payments and collectors are contacting you night and day, you need help. Dsouza and Strachan Legal Group has the knowledge and experience to get you back on track. Contact Dsouza and Strachan Legal group today for a free consultation.