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| *Business questions>>>Credit Questions |
Is it better for my credit to let my car be repossessed or to keep making late or partial payments? |
Question: I cannot afford to make my car payment. It is always late. My credit is already pretty shot, I just want to know what the better option is. Keep making late payments, until I get caught up or let them take my car? Thanks for any information. Answer: It depends on several things. If you can only make partial payments go down and see about refinancing more years. I am sure they would rather see you take longer at smaller payments than have to repossess your car. Can you do with out your car? I am assuming you work and make payments from there. If you can only make partial payments the bank will charge you late payments plus interest until eventually you will owe twice as much. Than they will repossess, sell the car for what ever it brings and either force you into bankruptcy or garnishee your wages for the balance. If the car has much value close ot the bank loan you might considering asking the bank to take itback and sell it. and you pay the balance in loan payments. If you can make late payments only you'll never get caught up. I would c onsider a few hours a week part time work for this sitution and aave that credit. let them see you are trying. |
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