How can I get out of a predatory car loan?

I'm stuck with a predatory car loan and the monthly payments are killing me. Any advice you have on getting out of this loan would be appreciated.

Answer
Predatory loans, or loans that charge hidden fees and exorbitant interest rates, are unfortunately far too common. Most people don’t read the fine print due to a lack of knowledge or the excitement of buying a vehicle.
But even if you’re locked into a predatory loan, you still have options. The easiest way to get out of a predatory loan is to refinance the vehicle. While this may prove difficult if you have a poor credit score, credit unions may be more willing to work with you, as well as lenders that you have experience or a long-term relationship with.
If you can’t secure a new loan or refinancing, another potential solution is to pay off the loan in its entirety (this may not be an option if you’re borrowing money to buy the car).
Or, finally, you could just give the car back. Many predatory loan places won’t bother filing any marks on your credit report if you bring the car back, and because you returned the collateral, they may not have much of a case against you. Bringing the car back is also better than having it repossessed, in which case they’ll charge you towing, storage, and other fees.
avatar
Eric Schad
Answered on Jul 29, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free