Losing your job can come as a shock. Your life goes out of order and you don’t have a constant flow of income coming in. There is only so much time for your savings to survive and you have to figure out what’s to be done with your debt. If the economy is hit bad, then you may very well not be able to find another job for a year.
When you lose your job, you’re in a pickle. In a few months time, you may not have enough money in your bank account to support you, so perhaps even entertaining debt bills is not an option.
Do not give back the car
It may be tempting to try and get rid of the debt by returning the car. The option of voluntary repossession may look very appealing. You allow the lending agency to repose the car at any time and prevent yourself from defaulting on the loan.
Though you save yourself from defaulting on the auto loan, it will negatively impact your credit history.
Keep Paying the Car Loan
‘Don’t pay the debt bills’ – this thought will cross your mind. This is the worst choice you can make. As you avoid your auto loan debt, your credit score will slowly decrease. Further, you may have a collection agency come after you. When your car is finally repossessed by force, your credit score will be trashed. So, how can you keep paying the car loan with no job?
Budgeting
Keep a tight control on your expenses through budgeting. By planning your spending, you ensure none of it is wasted. This is a superb way to increase your saving.
Always Keep Aside Sufficient Funds for Loan Payment
In your budgeting, set aside money for your auto loan so that you always have sufficient cash for the debt payment at the end of the month.
Why do you want a good credit score?
Because you have lost your job, maintaining a good credit score is even more important.
Keeping your credit score is easier than rebuilding it
Rebuilding your credit is tough. You have to change your image of an irresponsible borrower into a responsible one. This will be even tougher if you still don’t have a job.
Getting Fresh Credit will be Difficult
The lower your credit score, the harder it will be to get a loan. When you are out of a job, you will begin to heavily depend on your credit. What happens if you can’t get a loan because of your bad credit score?
Get in Touch with your Lender Agency
For those of us at Insta Auto Loan, we are sensitive to our customer’s problems. Get in touch with us and we can discuss an appropriate solution, which may include steps to:
- Lower the Interest rate
- Reduce the minimum amount
- Defer the auto-loan payment to another time period
You do have options that don’t result in loss of the car and a negative impact on your credit score. All you gotta be is aware.
