If you’re also a victim of the financial turmoil witnessed by the world over the last few years, then you’re probably also behind on your auto loan payments. However, if it has been up to 60 days and you haven’t been able to pay for your car, it may be time to take the next step.
Thankfully, there are many options you can consider before matters escalate to the point of no return. Here are some of them.
Consider Modifying Your Auto Loan
Is there a way to lower your auto payments without refinancing? Surely, there is, in the form of loan modification.
Start by explaining your current financial difficulties to your lender and request any possible relief options you can avail of. Sometimes, options such as extension programs and loan forbearance can help borrowers get back on their feet.
Consider Auto refinance
At this point, you may have faced enough trouble to reach the conclusion that you can’t afford your current car loan. Hence, if you have a strong payment history and a decent credit score, there’s no harm in looking for options to refinance your vehicle.
Remember, refinancing entails that your new loan will pay off the old loan and give you a brand new start in terms of monthly payments. However, landing a deal with a higher interest rate or longer terms won’t do you any good. Hence, make sure to weigh your options properly before settling for a new deal.
Some lenders will allow you to make your first car payment 60 days after you refinance your auto. No car payment for 60 days that’s a huge help.
Trade the Vehicle For Another One
Have you ever considered trading in your vehicle? If you haven’t, it may be time to do so. While it is heartbreaking to let go of your dream car, there’s absolutely no harm in putting your needs before your wants.
Will a smaller car be able to fulfill your needs for a while? Will it help you save up till you’re able to purchase a car of your choice again? There’s a lot of flexibility you can enjoy with trading a vehicle and especially when it’s the need of the hour.