PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can a bank garnish your wages for a car loan?
I’ve missed a few car payments. My bank was understanding at first, but now they’re telling me I need to pay the outstanding balance within the next two months. I’m not sure how I’m going to afford it. What will happen if I can’t? Will a bank garnish my wages for an outstanding car loan?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Repaying a
loan
can undoubtedly be tough, especially if you’ve fallen behind. However, if legal in your state, a bank can garnish your wages for a car loan—but only if the vehicle has been repossessed and sold for less than you owe.You should contact your bank immediately to avoid repossession. Plus, they’ll likely work with you to reach a repayment agreement that’s mutually beneficial.
Because you’ve missed a few payments, you may also want to consider
refinancing
into a new loan with lower monthly payments.In addition, you can free up room in your budget to put more money toward your car loan by saving on other expenses—like
car insurance
. Jerry
makes it easy. Jerry’s an insurance comparison app that shops for low prices with over 50 different insurance companies for free.If you’re hesitant to switch plans or insurance providers because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and even helps cancel your old policy! And if you have any questions along the way, just text one of our agents through the app. The average Jerry user saves $879 a year.
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies