Five Ways to Avoid Repossession

1. Refinance You Car Loan – You may be able to refinance your vehicle and get a lower monthly payment.

2. Ask For A Car Loan Modification – For example, if you have a car loan with 24 months remaining to pay, ask your lender if you can extend the term to 30 or more months. This can reduce your monthly payment significantly.

3. Ask For A Deferment – Ask your lender if you can skip one of your payments. Some lenders may let you tack the deferred payment onto the end of your car loan’s term. Therefore if you had 30 months to pay back a car loan, the deferment would make the new repayment time 31 months.

4. Ask for a Late Charge Waiver – If you can prove that waiving or reducing the late fees will help you get bring your car loan payments current, many lenders may be willing to waive or at least reduce those charges.

5. File Bankruptcy – If you’re behind on your car payments and other bills, filing bankruptcy may be the best way to avoid repossession.