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At Risk Of Missing A Car Payment In Waterdown?

At Risk Of Missing A Car Payment In Waterdown?

Missing a car payment is a situation no one wants to be in, but many Canadians find themselves at risk of doing so every year. It’s often not even your fault. Situations change, employers cut back, working hours are reduced or health issues can get in the way.


So, what can you do if you think you’re at risk of missing an auto loan payment in Waterdown?


There are three things you need to consider. Preferably before you miss a payment!


1.   Assess whether it’s a temporary situation or a longer term one


Do you think you’ll default on a single loan payment or more than one? Is the situation you’re in temporary or will it last a few months? Is it something you’ll get over quickly or will it take time?


Knowing the situation and how it will affect you in the short and long term will help frame the next steps.


If it isn’t clear, just do the best you can with the information you have.


2.   Talk to your lender


If you think you’re genuinely at risk of missing a car payment in Waterdown, talk to your lender as soon as you can. If you can do it before you miss the payment, the lender will be much more willing to work with you than if you do it afterwards.


Lenders have a range of options depending on your situation so discussing it with them is essential. As you should have an idea whether it’s a short term or long term situation, you should be able to decide on any course of action accordingly.


3.   Consider other options


Like we discussed on Tuesday, you will usually have options if your Waterdown auto loan isn’t working for you. Depending on what the lender says, you also have courses of action you can take yourself, such as:


Taking a payment holiday – Payment holidays are agreed breaks in your loan of between 3-6 months. They need to be agreed in advance with your lender but can give you the breathing room you need to regain control of the situation.


Refinance the loan – If you’re a year or two into the loan, you could refinance it for a cheaper one. This will depend on what’s going on and whether you would qualify for a new loan but is definitely an option.


Sell the car – If you have equity in the car, you could sell it and settle the loan. If you have cash left over, you could buy a cheap runabout to see you through until the situation improves.


We cannot stress enough how important it is to move quickly as soon as you’re certain you won’t be able to make an auto loan payment. The same for discussing the situation with your lender before you miss a payment.


Talk before you miss a payment and you’re a loyal customer trying to do the right thing. Do it after and you’re a defaulter trying to rescue the situation. Lenders will always be more generous to the former than the latter!


If you need help or advice on anything to do with auto loans in Waterdown, contact Car Nation Canada today, we can help!


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