Easy Habits to Never Miss a Car Payment in Freelton

Easy Habits to Never Miss a Car Payment in Freelton

Posted on September 16, 2021

Auto loan payments are a constant outgoing, one bill to add to the many others. Yet, just like a bill, it’s a financial obligation that you signed up to.

Life is much busier now with more going on, making it all too easy to miss an auto loan payment. Our Freelton auto loans team shows us how to avoid that so you'll never miss a car payment again!

Use a household budget

Missing an auto loan payment is about more than not paying the bill on time. It can also be about not having the money in your account to cover the payment.

That’s where a household budget comes in. Keeping a running budget takes just a few minutes each week once set up and can show you in advance if you’re going to have the money in your account to make the payment.

Pay bills the day after payday

When you set up an auto loan, you will often be given the option of choosing the day you pay, if you do this every pay do you'll never miss a payment.

We recommend selecting the day after you get paid. That gives your pay enough time to clear or overcome any delays but not so much time that it gets spent elsewhere.

Paying all your bills on the same day will be a big hit to your bank account but it gets everything out of the way. Whatever you have left, you can use throughout the month, put away in savings or use however you like.

Live within your means

We appreciate that telling you to live within your means is very much easier said than done. However, budgeting and using credit cards sensibly is often all it takes to make sure you have the money to pay the bills.

There will be situations where you need a little extra help or cannot make it through one month or another. That’s fine, as that happens to all of us. And that’s what savings are for.

Know your options

If you do find yourself getting into financial trouble, you have options. As long as you take action before you miss a payment, you can work your way through the situation without missing a payment or taking a hit on your credit score.

If the situation is temporary, contact your lender and request a payment holiday or deferment. They aren’t just for the pandemic. They can be accessed any time and most lenders will offer them if the alternative is you defaulting on a loan.

If the situation is longer term, consider negotiating down other debt, refinancing the auto loan or seeking expert help.

There is a lot of help out there if you are willing to accept it.

Sell the car

Selling the car is obviously a last resort but it can help you avoid missing loan payments and taking a hit on your credit score.

Depending on the situation, you could sell the car, settle the loan and take the bus, use another car, buy a cheaper car with any money left over after settling the loan or get a cheaper loan.

All options of last resort but they are still options.

When you’re ready for a car lease or loan, get in touch with the Freelton auto loan experts at Northway Ford for great deals on auto finance.

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