Life Without A Car Is An Inconvenience

923 WordsOct 31, 20154 Pages
It happens — you lose your job, get sick or you experience some other financial setback and begin to fall behind on your bills. One of those monthly accounts may be your car payment, what provides transportation to help you find a job, take the children to school, and to simply live your life. For most Americans, life without a car is not merely an inconvenience, but a hardship. If you fall behind on your car payments, you should know that your creditor may repossess your vehicle. Here’s what you need to know about car repossession and how to avoid it. Lien on Me If you take out a loan to purchase a used or new car, the bank, credit union or other financial enterprise has what is known as a “lien” on your car. A lien means the creditor holds title to your car until you pay off the loan. It also means that if you fall behind on your payments, the creditor has the right to repossess your vehicle and sell it in a bid to recoup its loan losses. Individual state laws determine how repossessions are handled — you may have the right to regain possession after the fact — typically that involves catching up on late payments and paying related fees, including court costs. If your car is already repossessed it will cost you much more to get it back than by simply keeping up with your payments. Have a Conversation Fall behind on car payments and you may feel like hiding under a rock. However, withdrawing from a painful situation will only make matters worse. Indeed, your car loan

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