Debtors Unite: Help with Car Payments
Help with Car Payments, Loans and Refinance

Car Loan Modifications

Loan modifications are sometimes possible on your car loan. If you need help with your car loan, you should contact the lender directly rather than calling one of these car loan modification scams.

The lender may modify the loan in some circumstances to help you afford the loan. The more likely scenario is that they will allow you to postpone making a single payment rather than modifying the entire loan.

There is no requirement that a lender alter your loan. It is after all a contract that you agreed to at the time of the deal.

Unlike credit counseling organizations who can often lower interest rates and reduce payments on unsecured credit card debt, no third party has any leverage over a lender when the loan is secured by collateral. In this case, the car itself serves as the collateral to guarantee the loan. If you default, the lender reserves the right to repossess the vehicle as a way of cutting their losses. They can even sue you for the remainder in most states, which may force you to seek legal protection.

For your lender to modify your current loan, you must approach them with a bona fide hardship. A job transition or medical emergency are examples of extraordinary circumstances that could cause you to fall delinquent on your loan.

Sometimes a lender will modify your car loan. They may view it as the best option for them to be able to collect on the loan. It is possible that your lender will agree to extend the term of the loan by a few months, resulting in a lower monthly payment. This is known as a loan extension.

Alternatively, lenders are more apt to allow for you to skip a payment as a one-time courtesy. This doesn't actually modify the loan; rather it allows you to get back on your feet and pick right up making your normal payments the following month. They simply take the skipped payment and tack it on the end. Of course, you could see additional interest accrue which would become payable at the end of the loan term.

To inquire about a car loan modification, you should contact your lender directly. If your lender is a community bank or credit union, you might be best served by visiting your local branch for help. Even if the loan is administered from a centralized call center, the local representative may be willing to make the call with you. That effort shows your genuinely good intentions and may be the deciding factor in getting the help that you need.

If you are unable to modify the loan, then you might look at options for getting rid of the car that you cannot afford. If you are able to negotiate an out with your lender, it might allow you to get your finances under control so that you are able to buy a cheaper car.

Our Promise
Unlike the advertisements that you may see claiming that they can modify your car loan, we tell you the truth. We do not modify your car loan, and neither do they. The difference is that we don't charge you and instead give you the tools you need to keep your car.
Car Loan Advocate
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Debtors Unite, Inc.
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