Car Loan Debt Relief Options In Burlington

Car Loan Debt Relief Options In Burlington

Posted on May 3, 2021

Auto loans are significant amounts to pay over a significant amount of time. If you’re having trouble making payments, or consider that missing a payment is likely in the near future, you need to take action. But what car loan debt relief options do you have?

Our Burlington auto loan team outlines some of your options.

Nobody wants to default on a loan. It’s a serious situation that could impact your financial wellbeing and your credit score for a long time. Avoidance is critical and that’s what we’re discussing today.

Burlington Car Loan Debt Relief Options

You have a few options open to you depending on your situation. Some will work better in some circumstances than in others so you’ll have to decide which works best for you.

Ask your lender for help

Despite what you may personally believe about auto loan companies, they actually want you to succeed. It’s in their interest for you to pay off the loan in full as they make more money that way.

Therefore, they will work with you to come to some kind of arrangement where you can continue paying the loan.

The one thing we always say in these situations is that it’s best to talk to your lender before you miss a payment rather than after. In our experience, they are much more likely to help you out if you’re a concerned customer who needs a little help.

Attitudes can change drastically once you switch from concerned customer to defaulter.

Lenders have a range of tools they can use to help you out. They include payment holidays, hardship programs and any internal solutions they may have.

Auto loan refinancing

Switching your current loan for a cheaper one is also an option. If you have paid off a good chunk of your current loan, you could pay it off with a cheaper, more manageable one.

This will depend on your credit score and should definitely be done before you miss a payment but can be a good way to address the situation.

Sell the car

We appreciate that this isn’t the best option for anyone but it is an option if you need it. Selling the car to a dealer or privately can free up cash to pay off the loan.

If you’re lucky, you’ll have money left over to buy a cheap car. Otherwise, you’ll have to make other arrangements.

It is for those reasons that this is the option of last resort but it is still an option. We would recommend trying other avenues first and only selling the car if you really need to. That is unless it’s a second car or weekend runabout of course.

Debt is something we all have learned to live with and that’s fine as long as you can continue to live alongside the debt. The moment that debt becomes unmanageable is when you need to take action.

Contact Unique Chrysler for help, advice and competitive Burlington car finance and leasing.

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