What should I do if I have a car loan but I'm going to study abroad for six months with no income?
What should I do with my car if I'm traveling overseas? I'm going to study abroad in Spain, but I currently have a car loan. When I go abroad, I'm not going to be able to afford it.
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Answered on Jul 15, 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.
“You won’t be able to get out of the loan, but you may be able to do a few things to keep the car without damaging your credit.
The first option is to ask your lender if they’ll defer your payments for six months. The loan will still accrue interest, but you won’t have to pay during that time.
A riskier option would be to make the payments with a credit card that has a 0% interest introductory rate. You can put the car payments on this card and then pay the minimum until you get back home.
You could also ask a family member such as your parents to make the payments, but this may cause stress between you and them. This would probably be your worst option, but it’s something to do if nothing else works.”
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