Not matter how punctual you can be, there is usually a time when you are late paying for your car payment. You have to learn the consequences of making a late payment.
The outcome of missing one car payment
To begin with, if it is the very first time to miss this kind of payment, your lender is likely to give you a call reminding you of the same. He or she will like to know when you need to make the payment. Should you set a date which is not far away, he may end up helping you make some adjustments to your payment plan.
Is a penalty or rate fee likely to be charged?
You ask yourself whether your credit score is likely to be impacted. In most cases, most lenders do not report their clients to the credit bureaus that soon. This gives you a grace period of ensuring your credit core is in order. Though that is the case, it is not likely to last for a long time.
What are the consequences of delaying the Car Payment for 30 days?
Serious consequences are accorded to those who exceed paying for more than 30 days. You may risk being reported to major credit bureaus such as: TransUnion, Equifax and Experian. Additionally, your lender may give you a number of calls persuading you to pay the due amount.
The frequency of the calls increases till you have accumulated more than 30 days.
What are the consequences of delaying the Car Payment for 90 days?
You may be declared by your lender to have defaulted a loan once 90 days are over. Once the loan is in default, it may be handed over to a debt collection agency. This means that the collection agency will be entitled to some fraction of the total amount you owe your lender. At this situation, you may end up loosing your vehicle since the repossession process has begun.
Should your vehicle be repossessed, you have to remember that all belongings in the car still belong to you. The lender will still give you your possessions even if the vehicle was taken while you were away.
What option do you have if you still are not in a position to pay for you car once it has been repossessed? You have to research the number options available to get out of debt. Various options are usually dependent of the amount of debt. You can file for bankruptcy or save a lump some amount of money a clear the debt at once. This is when you need the services of a reputable credit counselor.