Automotive credit: What happens if you fall behind with the monthly payments?
Buy a car on credit It implies a great responsibility, since you must comply with the payment every month, otherwise, you could have a problem. Here we tell you the consequences of fall behind with monthly payments.
If in your case you are going through a difficult economic situation and you have not been able to pay the monthly installments of your car loan, we tell you what are the consequences that this could bring you, take note.
What happens if I don’t pay my auto loan?
The first thing you should know is that a credit, in general, is a figure that banking or financial institutions give to individuals to facilitate obtaining a good.
The types of credits can vary depending on the amount requested and what people want it for, for example, they can be mortgage, automotive and personal.
Having clarified the above, it is important that you know that some car agencies have departments that coordinate the financial part of customers interested in buying a vehicle through credit.
In case of not being able to comply with the payment of the automobile loan, it is most likely that the financial entity that granted the loan will offer the debtor several refinancing alternatives to be able to cover the remainder of the credit.
In the worst case, they could confiscate the vehicle in case a considerable period passes that the person does not pay his debt, this being one of the rare solutions.
Other alternatives for people who cannot continue paying their auto loan are:
debt transferwhich means that to get rid of the problem, the debt can be transferred to another credit option with a new payment term and amount of the monthly payments.
debt settlement, this could be the most viable option, it is about negotiating with the financial company to settle with an adequate cost for the debtor; that is, obtain an accessible discount to finish paying.
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RefinancingFinally, you can also reformulate the financing plan, as long as more than 70% of the total cost of the car has been covered.
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