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What can I do if I can't pay my car loan?

I lost my job due to the pandemic, and my bills have been piling up since. The unemployment benefits have been a huge relief and allowed me to cover rent, bills, and my car payment, but now that those have ended, I’m struggling. What should you do if you can't pay a car loan anymore?

avatar
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear that you lost your job and are struggling to make your
car loan
payments.
The first thing you should do is contact the lender before you miss a payment to discuss your options and find a solution. Hopefully, you can defer payments or modify the loan to create a repayment plan that is more manageable.
If deferment or modification isn’t enough, you can:
  • Refinance
    the loan to improve your interest rate and/or terms
  • Sell or trade in the vehicle for one you can more easily afford
  • Allow the vehicle to be repossessed or surrender it to the lender
If you’re able to hang on to the vehicle, free up room in your budget to put more money toward your loan by saving on
car insurance
with
Jerry
.
It’s this simple: download the Jerry app or go to getjerry.com. In less than 45 seconds, Jerry collects all of your information from your existing insurer. Choose from competitive quotes from 50-plus top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. The average Jerry user saves $879 a year.
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