Unable to continue car payments

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A Fin24 user is unable to afford his monthly car payments any more and wants to know what to do. He writes:

I have a car which I cannot afford to pay off anymore.

What can I do? And would I be able to get a lower priced car?

Rudolf Mahoney, head of research at WesBank, responds:

It is advisable to discuss the change in your situation with your bank as soon as possible.

The bank can assist with options to help you get out of your current deal, such as selling or trading in your current car.

They can also discuss options to finance a cheaper alternative for you.

Remember to make contact with the bank as soon as possible, rather than waiting for the next payment to bounce.

It is always better for your credit rating for you to approach the bank, rather than the other way around.

And your credit rating will be important when the time comes to finance a cheaper vehicle.

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer:
Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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