What can you do if you cannot make your next payment for your car? Simply wait until the repo men come for it? And have your credit score damaged by the incident as severely as a road accident would damage you? Of course, you can search for help from Debt Stoppers to represent you. But there are still things to do yourself to escape this roaring word – “repossession”.
What You Can Do
When you have to skip your next payment because you simply don’t have enough money, there is still a place left for maneuver. The best ways to regulate the situations are the following:
- Contact the seller (who actually still owns the car until your final payment) and try to restructure the debt. Sometimes they are contactable in this meaning.
- Get the money for the next payment and reinstate the loan. Maybe your state law provides it as a legal way. If not, it can be the seller’s goodwill.
- Find a source to reinstate your loan. You should be cautious with this, though, because getting deeper in debt is only good as a temporary solution. If you have a sufficient payment coming, but a bit delayed, you can risk it and take another loan to cover the next payment. In addition, it can improve your credit history in case it works.
- Re-read the contract. Maybe the lender has provided other options of restructuring or refinancing, so you can use these. In addition, it will give you more information on important details – for example, how much time you have got to catch up after you have missed the payment for the first time.
What You Better Not Do
Some people may act foolishly when panicking. Such actions may seem good emotionally, but these actions are not reasonable at all. So…
- Don’t try to run and hide. You may feel too afraid to answer calls or emails when they obviously offer no good. But there is much more to be scared of if the repo men are after you. Remember, intendedly hiding the lent car from repossession is a crime.
- Don’t try to make any hocus-pocus with the car itself. Hiding it somewhere? Changing plates? Crashing it down for the insurance? None of these actions will get you anywhere good, as this is even more of a crime than purposedly hiding your car from repo men.
It’s Not about Keeping Your Car
Repossession can make you more damage than just leave you carless. Then, you have other options to sacrifice your vehicle but benefit elsewhere.
- Surrender the car to the lender. If you come to them, they won’t have to come to you.
- Sell the car yourself to cover the rest of your debt. The price can be higher than that on the auction it’s sold on forcedly.
In these cases, you lose the car but keep your credit history safer and cleaner. Maybe you even have enough money left to buy a new one – at least, to make the down payment. Anyway, it’s better than having both your car repossessed and your credit score spoiled.
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