Sorry to hear that your finances aren’t working out, but you’ll get it! As far as your
car loan is concerned, a lender can garnish your wages. However, this is a worst-case scenario that typically only happens if your car has been repossessed and the auction amount still leaves a remaining balance on your loan.
When a lender repossesses your car, they sell it at auction and apply the proceeds toward your car loan. If you have any remaining amount, the lender can either garnish your wages or send the remaining amount to collections.
If the lender sends the amount to collections and you still don’t pay, they can get a court order to garnish your wages. Again, this is extremely rare and typically doesn’t happen unless you don’t pay the remaining balance of the loan.
In your case, reach out to your lender to work out a repayment plan. Many times, the lender will accept smaller monthly payments until you repay the loan.
If you’re still driving another car during this time, explore new car insurance policies and compare rates with the Jerry app. By finding a new policy, you can save nearly $900 per year that you can put toward your remaining loan balance.
As a licensed broker,
Jerry can help you find and compare quotes from over 50 top providers, including Nationwide, Allstate, and Travelers, in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!