Can't afford to make balloon payment due on car.

Mar 19, 2011

Can't afford to make balloon payment due on car
by: Debtcollectionanswers.com

Generally, when someone does not make their car loan payments according to the terms of the loan, the lender has the right to repossess their vehicle regardless of whether or not they had a good payment history up until then. However, exactly under what circumstances your car can be taken should be spelled out in your loan agreement.

You have several options for avoiding a repossession, which will badly damage your credit history. One option is to try to renegotiate the terms of your loan with your lender. For example, maybe the lender would agree to extend the terms of your loan in exchange for your not making the balloon payment. This would mean of course that you would be paying on your car for a longer period of time and that over the life of the loan you would have paid more in interest, but at least you wouldn't lose the car. Another option is to refinance your car at more favorable terms with your current lender or with a different lender. If neither option is right for you, selling your car or voluntarily giving it back to your lender are two other options you may want to consider to avoid a repossession.

I strongly advise that you purchase a copy of our book Debt Collection Answers, which discusses the pros and cons of all of your options and also explains how the repossession process works. Click here to get our ebook Debt Collection Answers. The book will give you much of the information you need to make an informed decision about the best way to deal with your situation. However, it's important that you act quickly because it's possible that your lender has the right to take your car without giving you any advance notice if you are just one day late.

Can't afford to make balloon payment due on car.

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Can't afford to make balloon payment due on car.