Are you struggling to pay your car loan? Missing auto payments can lead to late fees, damage to your credit score, and even can even lead to vehicle repossession. You may be searching for financial assistance for your car’s repossession or are trying to catch up on missed payments. If so, you aren’t alone and there are steps you can take to get you back on track.
Many people face financial hardships that make it difficult to keep up with monthly payments. In fact, according to the New York Fed, auto loan delinquency rates are up compared to a year ago. The good news is that there are options available to help you navigate this challenge. Here’s a guide to finding the financial assistance you need.
Work with Your Lender
Many lenders will work with you if you have missed car payments. They may be able to lower your payments or extend the life of your loan. You may also be able to defer payments temporarily due to hardship. Most lenders don’t want to have to start the repossession process and incur those costs, so they are willing to work with you if you show good faith.
Call Your Bank
Many banks and credit unions offer financial hardship programs where you can borrow money for bills like car payments. If you qualify, financial hardship programs can help you find financial assistance for repossession or missed payments.
Explore Government Programs
Temporary Assistance for Needy Families (TANF) may be available to you. Low-income families may qualify for help with transportation costs. These programs, which vary by state, can help with cash payments for basic needs and may help cover your car payments. Local Social Services may also be available to you. Check for community-based car payment relief programs. Most cities and towns have general assistance or town welfare funds that can help you with your car payments.
Research Nonprofit Resources
Many local nonprofits may be able to help you catch up on your car payments. You can utilize resources like 211 to find resources available in your community. Some examples of nonprofits that can help you with payments include Help Me Bounce, which will help your family if you’re facing financial hardship due to a medical crisis. Modest Needs offers grants to needy individuals who don’t qualify for other kinds of assistance. St. Vincent de Paul, Catholic Charities, and Lutheran Services in America are other well-known charities that may be able to help you.
Refinancing Options
If you’re eligible to refinance your car, it can be a great option. You can lower your monthly payments and get caught up on your payments. If you extend the life of the loan, you may get a lower monthly payment, but may pay more over time in interest. Pay attention to loan terms and shop around for the best rate.
Do you need financial assistance for your car repossession and have additional questions? Let us know how we can help you in the comments.
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Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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