Phoenix, AZ -- (SBWIRE) -- 05/07/2013 -- These people are in luck, though, because Credit-yogi.com is here to provide ideas about how to avoid car repossession, along with other fiscal tips, such as:
- Work Out Payments
- Reinstate the Auto Loan
- Trade In the Vehicle
- Negotiate with the Lender
Pay the Late Payments
Depending on the original contract, a person may not be in default for a number of days, up to 30. In order to avoid having to go to a guaranteed car finance dealer and possibly getting scammed, it might be better to work out the back-due payments to bring the loan current. If one must take on a second job to get the money, so be it. Better to pay off what is owed than to have the car repossessed.
Re-establish the Loan
Whether one is in default or not, he may have the right to reinstate the original loan. Doing this can prevent car repossession, even after bankruptcy. To do this, one must bring the loan current, including any fees, in one payment. This is also referred to as the “right to cure the default.” Often, the state in which one resides provides the right to reinstate a defaulted loan. If one’s state does not do so, it may be written into one’s agreement. Go over that contract carefully to find what it says about reinstatement.
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Redeem the Car
A person generally has the right to redemption if his car has been “repo’d”. This means that if the balance owed is paid, he can avoid lenders offering guaranteed auto financing for bad credit. The cons to redemption are that it is unlikely that the vehicle’s owner will be able to pay what is owed if he’s already in default, and redeeming the automobile may not be in one’s best interests if the loan is more than the amount the car is worth. However, if the arrearage is rather small, or if there is equity in the vehicle, redemption may be the right move.
Talk the Lender Down
If one speaks to his lender, it’s possible that he can reduce the amount he owes by selling the car himself for as much as he can get. He could also simply surrender the car, as long as the creditor agrees to dismiss the balance due. The key is to duck looking into guaranteed car finance dealers for his next car.
www.Credit-yogi.com is a reputable, user-friendly website located in Pitts field, Massachusetts that connects people who have questions about finance with the fiscal experts who can answer them, free of charge. For an initial consultation, dial 866-964-9644.