What happens if you don't pay your car loan?

Will it be bad if I don’t pay my car loan this month? My mom got really sick recently, and I’ve had to take a lot of time off work to take care of her. I don’t know if I’ll be able to pay my car loan without draining my savings. What will happen if I skip the payment?

Answer
That sounds so stressful. I hope your mom is doing better!
Try not to worry if you’re just going to miss one payment on your car loan. You’ll see a drop in your credit score if you don’t pay your car loan this month, and the mark will stay on your credit report for seven years. However, your car won’t be repossessed unless you miss multiple payments.
In this case, it’s also a good idea to talk to your lender about what’s going on. Some lenders offer relief programs for borrowers who are struggling to make payments.
You may even be able to pause payments for a month or two in order to get back on top of your finances, especially if you’ve been good about making payments in the past. The earlier you talk to your lender, the more they will be able (and willing) to help you, so do so ASAP.
You can also try cutting costs on other bills to put more money toward your car loan. To save on your insurance, check out the Jerry app.
You can download Jerry for free and answer some quick questions to see your policy options in a comprehensive list. When you find a quote you like, Jerry can help you cancel your old policy and sign up for the new one.
Liz Jenson
Answered on Dec 03, 2021
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