Struggling with a car payment can happen for a variety of reasons – not solely because a driver did not plan adequately for their purchase.
Whatever the reason, missing car payments or returning the car to the dealership can have serious consequences on a credit score, according to Fox Business. Instead, car owners should contact the finance manager of the dealership and try to work out a deal where they can trade the car in for a cheaper model that will have lower monthly payments. Before any of this, owners should calculate how much they owe on the car loan, how much the car is worth, and how much they can afford to pay each month.
Another option is for owners to refinance their car loan, possibly qualifying for a lower interest rate, Fox Business reports. Some lenders will allow car owners to extend the loan, or move two payments to the end of the loan's term in order to allow some saving time now.
If possible, a good way to get out of the situation completely is to sell the car, Fox Business says. Owners should try to sell it for the balance owed on the loan, and make sure they have another mode of transportation for living without a car.