Having trouble paying your car loan? You’re not alone.
A recent analysis by the credit reporting agency TransUnion found that delinquencies (those more than 60 days past due) on automobile loans increased in the third quarter of 2009 almost 9 percent from one year ago.
Delinquencies were highest in Mississippi at 1.62 percent, followed by California at 1.46 percent. The lowest rates of delinquency were in Alaska at 0.19 percent, North Dakota at 0.34 percent, and Montana at 0.41 percent.
Nationally, the amount outstanding on the average car loan dipped 2.5 percent to $12,542, from $12,861 last year.
Loans taken out as part of this summer’s Cash for Clunkers program had not started to appear on most credit reports when the quarter ended. As those new loans show up on credit files, there is a good possibility average auto debt will increase.
The numbers showing increased auto loan delinquencies follow on the heels of figures showing that mortgage delinquencies hit a new high in the third quarter of 2009.
If the repo man is looking for your car, and you can’t get current but need to keep your car from being repossessed, consider Chapter 13 bankruptcy. And if you owe a lot more than your car is worth, and you financed the car over two-and-a-half years ago, in Chapter 13 bankruptcy you only have to pay the finance company what the car is worth, not the entire amount of the loan. And your interest rate can even be lowered through Chapter 13 bankruptcy.
Or maybe you’ve made the decision that it doesn’t make sense to keep your car. Or maybe your car has already been repossessed. Either way, you just want to make sure that the finance company can’t sue you for the balance remaining after they sell it at auction for less than you owe. If that’s the situation, then consider Chapter 7 bankruptcy.
I’d be happy to listen to your story, answer your questions, and tell you exactly how Chapter 7 bankruptcy or Chapter 13 bankruptcy could help you. Just fill out the Contact Dan form on the right side of the page and click Submit and I’ll get back with you as soon as I can. Or pick up the phone and call me at 918-615-8260. What are you waiting for? Time’s a wasting.
Source: TransUnion
