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What should you do if you can't afford a car loan?
I recently moved to be closer to my family and help take care of my elderly parents. My new job doesn’t pay as well, and I’ve had to make some drastic lifestyle changes. I’ve been reviewing my budget, and there’s no way I can keep up with my car payments. What’s the best course of action if you can't afford a car loan?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear about the lifestyle changes and struggling to keep up with your
car loan
payments, but I’m sure your family appreciates you being closer!If you can’t afford your car loan, you should immediately contact the lender to let them know about your situation. More often than not, the lender will work with you to modify the loan. Reaching out before you miss a payment shows you’re acting in good faith.
Besides modifying the loan, you can:
- Refinanceinto a loan with lower payments
- Sell or trade in the vehicle for one you can more easily afford
- Surrender the vehicle or allow it to be repossessed
Finally, once you inform your
car insurance
company of your move, they will likely readjust your rate. If you want to ensure you aren’t overpaying, use Jerry
, an insurance comparison app that shops for low prices with over 50 insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!View full answer
- Gregory R.
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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.
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