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

One of my dogs recently had puppies that we did not plan for, and the veterinary bills have been financially burdensome. I’ve done my best to cut back on unnecessary spending, but I still can’t make ends meet. I might default on my car loan. What should you do if you can’t afford your car anymore?

avatar
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Wow, having a litter of puppies must’ve been quite the shock! Fortunately, if you can’t pay your
car loan
, you do have options.
First and foremost, you should contact the lender before you miss a payment to show you’re acting in good faith. Ask about your options. Lenders will often allow you to modify the loan or defer payments.
If none of the lender’s options work for you, you could instead:
  • Ask the veterinarian if they have a financing option
  • Refinance
    the car loan to lower your monthly payment
  • Sell or trade in the vehicle for something more affordable
  • Surrender the vehicle or allow it to be repossessed
Additionally, you can help make ends meet by saving money on other expenses like your
car insurance
.
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