Paying Your Car Loan

Here’s why you don’t want to pay fees to a business that promises to lower your monthly car payment or help stop a repossession.

You probably rely on your car to get you everywhere you need to go, where it’s work, school, or running errands. While having a car can be convenient, it can also be a big financial responsibility. You may have taken out a loan to buy it. Until you’ve paid the lender back, you don’t legally own the car. And if you stop making payments, the car could be repossessed.

What happens if you’re hit with unexpected expenses or you lose your job? Suddenly, you may find yourself struggling to make that next car payment. What should you do?

Keep making your monthly payments. If you stop, your lender has the right to repossess your car. Contact your lender directly, and explain your financial situation. Discuss your options. It’s in everybody’s interest to work something out. Your lender wants the loan to be repaid, and you want to keep your car.

Question companies that say they can lower your monthly payments or stop the repossession process if you pay them a fee up front. By paying them instead of your lender, you could lose your car.

Bottom line – work directly with your lender, and avoid any company that claims to stop repossession or promises to lower your car payments, especially if they want you to pay a fee in advance.

Stay on the right track. Learn how to protect yourself from auto loan modifications scams at That’s

The information provided is from third parties not affiliated in any way with American Financial Network, Inc. This third party content is for general informational purposes only, and American Financial Network, Inc. makes no express or implied warranties, promises, or representations as to the nature, standard, accuracy or otherwise of the information provided, nor to the suitability of the information to your particular circumstances. AFN is not a tax or financial advisor, and individual tax circumstances may vary. Please consult a licensed tax professional and appropriate government agencies to determine tax consequences of home ownership.

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