An auto loan is a loan that is issued by a finance company for the purpose of buying a car. The loan is usually advanced at a certain interest rate and on an agreed repayment period and terms. But with the current tough economic times and high interest rates, many auto loan holders are finding it difficult to meet their repayment obligations. There are various ways that people with auto loan debts can use to repay off their debts. By adopting lifestyle changes that will ensure savings and then using these savings to repay the debt. These lifestyle changes could also be austerity measures at a personal level. After a certain period of time, the entire debt could be paid up and the person will have to be fiscally responsible in future to avoid such debts. Another way of getting out of an auto loan debt is by selling off an asset such as stocks and shares, for the purpose of paying off the debt. The asset can be purchased again when debts are cleared up and more money has been saved.
Can I negotiate an auto loan debt?
It is possible to negotiate the terms of an auto loan debt. This will normally depend on the location of the finance company that advanced the loan as well as the geographic location. While most finance companies prefer that the full loan and interest rates be paid out as initially agree, they would much rather alter the repayment terms and agree to a review of the terms of the auto loan, than risk a default. A default is usually a non-payment of the loan and this is a situation that the financial institutions would rather avoid.So it is possible to negotiate terms for an auto loan debt.
Can you be sued for an auto loan debt?
A person who takes out an auto loan and i unable or unwilling to repay the loan may or may not be sued. This will depend on many factors, but the bottom line is that the finance company has a right to seek legal redress if they give out a loan and the loan recipient is unable to meet their part of the agreement. Usually companies hardly sue for default. Instead, they allow their clients to seek out alternative ways of meeting their debt obligations. These include seeking out a consolidation loan, reviewing of repayment terms, sale of assets or even reclaiming the car.
What happens to auto loan debt when you die?
When the holder of an auto loan dies, the loan company may claim the car if the loan was not yet repaid in full. They may sell off the car and use the funds to reclaim the debt owed to them. The loan company may seek out other assets of the deceased person?s estate to repay their debts. All these factors will depend on the law of the land.
Source: http://www.personalfinanceplanning.org/can-i-negotiate-an-auto-loan-debt-or-how-should-i-settle-it/
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