Falling behind on a car loan payment can happen to anyone. The question is, once that happens, what do you do now? The obvious answer is – you catch up. But, how do you catch up?

It’s easy to take a car loan, but it’s harder to keep track of those payments. However, if you want to improve your credit score, you need to maintain a regular payment of the loan. An extremely busy month, strained finances or excessive expenditure can all lead to you missing your car loan payment. Well, here’s what you can do if you miss your car loan payment.

Get your Finance in Order and Budget

If lack of money forced you to defer payment, then your limited income needs to be better managed. This can be done through budgeting. The first step of budgeting is to account for all your income from your salary to any investments. Second step – account for all your expenses. Identify expenses that are luxuries and cut down on them. This way you save more and have more money to pay your debt with.

A good budget is one where you allot strict expenditure and never exceed those allotments. This way, you always have money to pay your monthly car loan payment without fail.

Throw in your Bonus

Since you missed out on your loan payment, catching up can be difficult. What you can do is wait to get a bonus. Rather than blow away the bonus on an expensive outing, use it to pay your debt. This is a good and easy way to catch up without straining your financial situation greatly.

Deferral

You can talk to the lender agency and ask them to defer the loan payment. The more times you skip a loan payment, the more times you’ll find yourself paying an increasing interest rate. This means that you are paying more for the car than you should. By deferring the payment, you are better able to deal with missing the loan payment. It could also help prevent you from defaulting on the loan.

Plan the Payment

If you missed the payment just because you had a busy week, you need to improve your planning skills. For the next 12 months, set reminders when you have to pay the monthly payment on your calendar.

Missing a car loan payment is not the end of the world. You can catch up and come closer to paying your debt. There is no reason to give up or sell your car just because you missed your monthly payment. At Insta Auto Loan, we understand that our customer is often facing tough financial situations. For this, we give them leeway in terms of time so that they can make the auto loan payment.