Auto Loans Getting Overwhelming? What to Do When You’re Behind on Payments

Posted by GO Federal Credit Union on December 26th, 2019

An estimated 28 million new auto loans were generated by Americans in 2019. That’s a large majority of citizens that could potentially be struggling to keep up with payments. Interest can sometimes be higher than what you anticipated when you signed onto the loan in the first place. Other expenses and bills can build up before you know it. Nobody wants their vehicle to get repossessed. These vehicles literally drive our lives. They get us to work, they transport our kids to school, and they carry us to important memories that last a lifetime. If you’re behind on payments, here are some ways to potentially avoid repossession.

• How much do you owe?  The amount that you’re behind will drastically affect your lender’s willingness to negotiate with you. If the amount isn’t too high, they may be willing to work something out. Also, if you’re able to pay even a little bit at the present moment, they may accept that momentarily until you can pay the balance. Reading the fine print in your contract is also a good idea. This can tell you details about your loan that you may have missed otherwise that may be useful in your situation.

• Call your lender and weigh your options. As mentioned, negotiation is key. If you assess the situation completely and have a detailed idea of what is at hand, your lender will be much more willing to negotiate with you to avoid repossession. Avoid sounding confrontational. You want your lender to understand that you’re holding yourself accountable for your missed payments in a way that will make them want to work with you. At GO Federal Credit Union, we offer a skip a payment option for when finances get hectic. As long as you notify us ten days before the payment is due, and are willing to pay the processing fee, this feature will put your mind at ease!

Missing car loan payments can be scary. Life can get in the way and blindside you when you least expect it to. GOFCU is the Dallas credit union that can help you find the best rate for your auto loan so you can avoid getting into a deal that you can’t afford later.

About the author

Based in Dallas TX, GOFCU has committed itself to empowering its members through meeting their various financial needs. Like any other credit union, GOFCU is also a not-for-profit financial institution.

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