Richmond Hill Auto Collateral Loans – What To Do To Prevent The Possibility of Car Repossession? - Instant Loans Canada

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Richmond Hill Auto Collateral Loans – What To Do To Prevent The Possibility of Car Repossession?

Jul 31, 2013

After enjoying the benefits of an auto collateral loan, at what point are you in right now? Are you afraid of the possibility of having your car repossessed because you can’t afford to pay your Richmond Hill auto collateral loan?

Here are some of the ways you can do to avoid such unfortunate circumstance and eventually save your car:

1. Remember what you have put yourself into. You borrowed cash. You used your car as a security for the loan. It is about time you man up and learn to pay your dues. The moment you entered into a loan contract, you created an obligation – which is to pay your dues on time. If you don’t accept that obligation, then be prepared to lose your car in the end.

2. Read and understand your loan agreement. Go and look for the document you signed when you were applying for an Richmond Hill auto collateral loan. Read the whole agreement once again. You may have not thoroughly understood the contract you entered into a while ago because you were too overwhelmed with your need to secure emergency cash. Now that you are in a calm situation, it is about time that you learn what you have placed yourself into. There may be hidden fees and charges you don’t know of. Sometimes, there are acceleration clauses in the agreement which makes the entire obligation to pay due and demandable the moment you start defaulting in some consecutive months or so.

 If you don’t understand what are written there, look for someone smarter than you to figure the whole thing out.

 3. Try to negotiate. If it so happens that you fail to pay your debts because you are just pressed into a really deep financial problem, call your lender and try to negotiate with them. Sometimes, they can be very accommodating and would be willing to adjust your agreement according to the terms which will be suitable for you.

Fact is most lenders don’t want to go through the process of repossession and selling your car at an auction because that would mean an additional workload for them. Moreover, it often leads to smaller revenue for them. So don’t be afraid to raise your concerns to your lenders.

 4. Start looking for means for repayment. Whether you like it or not, you have the obligation to pay your lender. Even if you are able to negotiate on a grace period for payment, reality is you still have to pay your debt. The smartest move you can make then is to find ways to refinance your debt. Look for a part-time job. Check if you have savings left and start using this money to slowly cover up your debts.