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COVID-19 Pandemic: What Should I Do if I Can’t Make My Car Payment?

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Michael Ciaglo / Getty Images

As the effects of the COVID-19 pandemic reach further into the economy, mandatory shutdowns and reductions in consumer demand will lead to job cuts. Many car owners will find it hard to make their car payments and avoid defaulting on their car loans. Others may put off a car purchase because of a tenuous job status. 

The first thing you want to do is not panic. The second is to contact your lender. Many lenders are offering special forbearance programs to help borrowers through the next several months. If yours is not, there are still options available. Doing nothing is an option that you should not pursue. Missing payments and potentially defaulting on your loan are mistakes that will haunt your credit for years after the crisis has passed. 

“Consumers who expect to be impacted financially by coronavirus, should contact their credit union to discuss options,” says Lynn Heider, vice president of communications and public relations for the Northwest Credit Union Association. “Most credit unions have programs in place, allowing members to temporarily skip payments, obtain emergency low-interest loans, and lower interest credit cards.” 

Most banks, credit unions, and other lenders don’t want to see you default on your loan or face repossession. It destroys customer relationships, it’s expensive, and it takes a lot of everyone’s time. Instead, they want to see you get back on your feet and make future payments. 

We’ll look at some programs already announced by major lenders, then discuss specific steps you can take if you’re in danger of missing a payment. 

Special Programs From Lenders

Several major lenders have announced programs to both help current borrowers and give new borrowers peace of mind. The credit arms of Ford, Nissan, General Motors, and Toyota will offer first payment deferrals of between 90 and 120 days to buyers of new vehicles. 

GM will also offer zero percent financing for up to seven years for top credit tier borrowers. The company is also providing complementary OnStar crisis assist services to current owners for a limited time. 

Terry Vine / Getty Images

Hyundai and Genesis are re-launching Hyundai’s job-loss protection program for buyers or lessees of new vehicles. If the customers lose their job, the companies will make as many as six monthly loan or lease payments. 

Ford’s credit arm has launched a website, FordCreditSupport.com, and a hotline where customers who need help can discuss options with the lender. 

“Ford is committed to lending a hand to the people who rely on us,” said Mark LaNeve, Ford’s vice president of U.S. marketing, sales, and service in a press release. “The peace of mind of our Ford and Lincoln customers is our top priority as we work through the developments of this outbreak.” 

Steps to Take If You Think You’re Going to Miss a Payment

If you have lost your job, had your hours reduced, or suffered a loss that makes it impossible to make your car payment, there are several steps you should follow before your payment is due.

Determine Your Loan to Value Ratio

It’s crucial you know where you stand with your car’s value and the balance of your loan. If you owe more than the car is worth, your options can be limited. When your vehicle is worth more than your loan balance, there’s a better chance you can deal with the issue and come out unscathed. 

Talk to Your Lender

It is best to talk to your lender before you miss a payment. In this time of national crisis, many lenders have created special programs or are being more flexible when working with borrowers. There’s an understanding in the marketplace that the effects on employment will likely be more temporary than long-term. Because of that, some lenders will allow borrowers to defer payments, have their payments reduced for a time, or their loan terms renegotiated. You may be able to refinance and significantly lower your interest rate or stretch the loan term to lower each monthly payment. 

Once you miss a payment, however, the lender may be less likely to work with you. 

Sell Your Car

If your car is worth more than the balance of the loan, you can sell it and pay off the loan balance before you miss a payment. You can then use your positive equity to put toward a cheap used car. If your credit rating is still high, you may be able to lease a vehicle with low monthly payments. 

Our used car rankings and reviews can help you find a pre-owned vehicle that will give you years of low-cost service. 

Rostislav Sedlacek / Getty Images

When you’re underwater on your car loan, meaning you owe more than it’s worth, you have to work harder to protect your credit. You can sell your car to a private party, maximizing how much you get for it, or you can do everything possible to continue making timely monthly payments. 

Our guide to getting out of an upside-down car loan offers more tips on protecting your finances when you’re trying to sell a car that’s underwater. 

Work With a Credit Counselor

One of the first ways of getting out of debt is to stop digging the hole any deeper. A credit counseling service – not a debt consolidation company – can help you set up a budget and work with creditors to create manageable payment plans. The Federal Trade Commission offers a guide to finding a credit counselor who will help you, and not rip you off. 

Give the Car Back to the Lender

It’s human nature to want to protect your car from repossession, but it’s a bad idea to hide it from the bank. If you’ve missed several payments and know the lender is going to repossess your car, it’s much better to return it voluntarily than make them chase after it. 

Here’s why: The lender pays a fee to the repossession company to retrieve the car. The harder you make it for them to get the car back, the more the repo company can charge. The fees the repo company charges the bank are added to the loan balance you’re responsible for. In other words, the games you play only end up costing you money. 

Watch Out for Scammers

Unfortunately, some scammers use turbulent times to prey on vulnerable consumers. Watch out for deals that look too good to be true, such as credit repair services and offers to get you out of debt, for a price. The U.S. News Money team provides a guide to recognizing and preventing loan scams

More Tools From U.S. News & World Report

It is the mission of U.S. News & World Report to help you through life’s major decisions and events. We’ve created a centralized hub of coronavirus information to help you and your family weather this storm. We have resources ranging from how to avoid being infected to understanding your rights as a traveler with canceled vacation plans. Our education team has resources to guide you through changing financial aid policies and how to move your education online. 

The U.S. News Money team offers a wealth of information about navigating today’s turbulent financial environment while helping you protect your savings and retirement.



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Black Lives Matter job fair aims to provide economic opportunity in Polk County

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LAKELAND, Fla. (WFLA) – Black Lives Matter organizers in Polk County are putting together a database to help lead people on the path to economic opportunity.

“I do a lot of things. General contracting, general clean up,” Tony Jones, of Lakeland, told a local recruiter.

Tony Jones, who lives in Lakeland

Jones is a veteran looking for a job. He served four years in the U.S. Army.

He wants to work, just needs an opportunity.

“You can’t pay no bills and eat if you’re sitting at home waiting for somebody to hand you something. You gotta get out and get it,” he said.

Jones came to the Dream Center in Lakeland to try to take those steps at a job fair organized by Black Lives Matter Restoration Polk Inc.

Black Lives Matter advocates protested to end police brutality this summer in Lakeland and all across the world with the ultimate goal of social justice.

“What’s going to happen next with Black Lives Matter after the marching and the rally? For us, it’s providing economic opportunity,” said Jarvis Washington, President & Founder of Black Lives Matter Restoration Polk Inc.

Wednesday’s job fair event launched Washington’s economic initiatives.

“We’re going to be working on the personal growth of the individual. We’re going to be helping them on everything from the mentoring program, credit repair programs, teaching them money management,” he said.

BLM partnered with Civitas Recruiting for the event.

Susan Freebern created the organization a few months ago to help community leaders steer under-served communities to good-paying jobs.

“They don’t know where to go to get these kinds of jobs. They don’t feel like they’re offered these kinds of jobs through regular staffing companies. I’m just going to go find those jobs and bring them to them,” she said.

On Wednesday, Civitas Recruiting and Black Lives Matter Restoration Polk gathered information to recruit workers for future projects through the Work Opportunity Tax Credit program.

“Nothing’s gonna be fixed overnight or taken care of. I think we just need to all strive together, make positive steps. That’s all you can do,” Jones said.

To sign up for the program click here.

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How DIY Debt Relief is Simplifying The Road to Financial Freedom

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Los Angeles, California, Dec. 02, 2020 (GLOBE NEWSWIRE) — “Debt” is an anxiety-inducing topic for most Americans. According to financial experts, about 80% of Americans have some form of consumer debt and are $38,000 in debt, excluding mortgage debt. Unfortunately, financial literacy isn’t a topic that’s extensively covered in schools. As a result, many Americans lack valuable knowledge on personal finance topics — including how credit cards and loans actually work, or how to get out of debt quickly should they experience financial hardship. When times are tough, the concept of “free” money is very appealing and overrides reservations about amassing large amounts of consumer debt.

While consumers have numerous debt-relief options — ranging from consumer credit counselling to debt settlement to bankruptcy — the actual road to recovery is fraught with numerous hazards that include repayment terms with unaffordable monthly payments, repayment terms that take too long, exorbitant fees, and false promises.

With over a decade of experience in the credit and finance industries, these are problems the founders of DIY Debt Relief understand all too well. Debt relief — specifically settling delinquent accounts with creditors and collectors — cost consumers more time and money than most can afford. Compounding the problem are unscrupulous service providers that make promises they can’t keep — charging too much for the service they provide and taking too long to provide said relief. It was with these issues in mind that DIY Debt Relief was created. 

DIY Debt Relief is a web-based company that provides educational videos and supporting materials to offer a “do it yourself” alternative for distressed consumers. By eliminating the need for a third-party service provider, consumers can avoid the prohibitive fees they charge — which in turn reduces the amount of time needed to settle accounts, pay off the agreed upon balances, and become debt-free. Additionally, even creditors and collectors who often refuse to work with third-party service providers are all too eager to work with consumers directly.

 The content, tools and resources DIY Debt Relief provide are designed to help consumers assess, evaluate, and improve their financial situation. The information is based on United States federal laws and regulations which govern the actions of creditors and debt collectors, which means they can be accessed and utilized in all 50 states. With these assets in hand, consumers can create a plan of action to get their delinquent, unsecured debt paid off as quickly and as affordably as possible. And with the belief that credit repair is the next logical step after the debt settlement and repayment process is completed, DIY Debt Relief provides additional resources and information teaching consumers how to quickly and correctly rebuild their credit profiles and FICO scores. 

The DIY Debt Relief process is easy to follow, gives the consumer control, is less expensive to implement, takes less time to complete, and can provide better results. Rather than relying on a third-party to entrust your financial future to, consumers now have the option of taking the initiative and doing the necessary work to get themselves to the debt-free future they deserve. With the goal of taking DIY Debt Relief internationally, the eventual next step is to make the videos in other languages. For right now, DIY Debt Relief’s videos educate on debt relief only in the United States — but its possibilities are endless, its effect promising, and its only trajectory from here is up.  

DIY Debt Relief IG: @diydebtrelief   www.diydebtrelief.com

Media Contact: support@diydebtrelief.com

This news has been published for the above source. DIY Debt Relief [ID=15547]

Disclaimer: The pr is provided “as is”, without warranty of any kind, express or implied: The content publisher provides the information without warranty of any kind. We also do not accept any responsibility or liability for the legal facts, content accuracy, photos, videos. if you have any complaints or copyright issues related to this article, kindly contact the provider above.  

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How DIY Debt Relief is Simplifying The Road to Financial Freedom | 2020-12-02 | Press Releases

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Los Angeles, California, Dec. 02, 2020 (GLOBE NEWSWIRE) — “Debt” is an anxiety-inducing topic for most Americans. According to financial experts, about 80% of Americans have some form of consumer debt and are $38,000 in debt, excluding mortgage debt. Unfortunately, financial literacy isn’t a topic that’s extensively covered in schools. As a result, many Americans lack valuable knowledge on personal finance topics — including how credit cards and loans actually work, or how to get out of debt quickly should they experience financial hardship. When times are tough, the concept of “free” money is very appealing and overrides reservations about amassing large amounts of consumer debt.

While consumers have numerous debt-relief options — ranging from consumer credit counselling to debt settlement to bankruptcy — the actual road to recovery is fraught with numerous hazards that include repayment terms with unaffordable monthly payments, repayment terms that take too long, exorbitant fees, and false promises.

With over a decade of experience in the credit and finance industries, these are problems the founders of DIY Debt Relief understand all too well. Debt relief — specifically settling delinquent accounts with creditors and collectors — cost consumers more time and money than most can afford. Compounding the problem are unscrupulous service providers that make promises they can’t keep — charging too much for the service they provide and taking too long to provide said relief. It was with these issues in mind that DIY Debt Relief was created.

DIY Debt Relief is a web-based company that provides educational videos and supporting materials to offer a “do it yourself” alternative for distressed consumers. By eliminating the need for a third-party service provider, consumers can avoid the prohibitive fees they charge — which in turn reduces the amount of time needed to settle accounts, pay off the agreed upon balances, and become debt-free. Additionally, even creditors and collectors who often refuse to work with third-party service providers are all too eager to work with consumers directly.

The content, tools and resources DIY Debt Relief provide are designed to help consumers assess, evaluate, and improve their financial situation. The information is based on United States federal laws and regulations which govern the actions of creditors and debt collectors, which means they can be accessed and utilized in all 50 states. With these assets in hand, consumers can create a plan of action to get their delinquent, unsecured debt paid off as quickly and as affordably as possible. And with the belief that credit repair is the next logical step after the debt settlement and repayment process is completed, DIY Debt Relief provides additional resources and information teaching consumers how to quickly and correctly rebuild their credit profiles and FICO scores.

The DIY Debt Relief process is easy to follow, gives the consumer control, is less expensive to implement, takes less time to complete, and can provide better results. Rather than relying on a third-party to entrust your financial future to, consumers now have the option of taking the initiative and doing the necessary work to get themselves to the debt-free future they deserve. With the goal of taking DIY Debt Relief internationally, the eventual next step is to make the videos in other languages. For right now, DIY Debt Relief’s videos educate on debt relief only in the United States — but its possibilities are endless, its effect promising, and its only trajectory from here is up.

DIY Debt Relief IG: @diydebtrelief www.diydebtrelief.com

Media Contact: support@diydebtrelief.com

This news has been published for the above source. DIY Debt Relief [ID=15547]

Disclaimer: The pr is provided “as is”, without warranty of any kind, express or implied: The content publisher provides the information without warranty of any kind. We also do not accept any responsibility or liability for the legal facts, content accuracy, photos, videos. if you have any complaints or copyright issues related to this article, kindly contact the provider above.


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