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Struggling To Pay A Car Loan In Hamilton Due To Covid?

Struggling To Pay A Car Loan In Hamilton Due To Covid?

Even though we have lived with the pandemic for over a year, it is still having an effect. Canadians from all walks of life are being thrust into situations not of their making and are finding life difficult. If you’re one of them, help is at hand. If you’re struggling to pay your Hamilton car loan, you’re not alone. There are things you can do to get a little help.


Canadian government assistance


The government quickly introduced a series of measures designed to help you when you need it most. That includes help for employers to retain staff and cover costs during the pandemic. It also includes help for individuals suffering hardship because of it.


The Canada government website is a great source of information for anyone having difficulty because of COVID-19. We recommend reading it and applying for any help you can get.


Auto loan companies helping those struggling to pay


The majority of auto loan companies and mainstream lenders are also playing their part. Many are offering payment holidays of between 3-6 months where you can take a break to help get you through.


These payment holidays postpone your auto loan payments for the period so you have a little less going out each month. You need to be aware that the interest will still accrue though and it isn’t a giveaway.


The time you take as a payment holiday will be added on to the end of your loan term.


It’s still a very useful tool to use if you’re struggling and is definitely better than defaulting!


Missing loan payments


Some lenders will also waive late payment fees and delay marking missed payments on your credit report. Try to avoid this wherever possible though!


If you have taken a payment holiday and are still struggling, talk to your lender. Make sure to do this before you miss any payments and discuss your situation with them.


As well as the formal processes for helping borrowers, many lenders have informal processes they can apply at their discretion. They will be much more likely to do this if you contact them before you miss a payment than after!


Cut back wherever you can


Do you have a household budget? If not, you really should create one. Knowing exactly what you’re paying out versus what you have coming in can be a financial lifesaver.


Plus, it helps you quickly identify areas of spending you could cut back, even temporarily, while you get back on your feet. You may feel like you’re robbing Peter to pay Paul but keeping on top of auto loan payments is essential if you are to avoid long term damage to your credit score.


If You Are Struggling To Pay Your Car Loan, Don’t worry too much


Despite things looking tough and the future looking doubtful, the pandemic will pass. Things will recover and life will eventually return to normal.


While you should do whatever you can to keep up your payments and stay afloat, if you really can’t, nothing is irreversible and we can recover from anything.

When things get better and you’re ready for a new car,


Then, when you’re ready, contact Unique Chrysler for help, advice and competitive car finance in Hamilton. We would be only too happy to help!


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Categories: Auto Loan

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