A combination of interest rate increases, high inflation, and a cooling job market has resulted in many Americans falling behind on their car payments. Delinquencies and defaults are on the rise with the number of borrowers 60 days delinquent or more are up 27 percent from a year ago.
Subprime borrowers are often the first to fall behind on car payments. Many who took out subprime loans have significantly higher rates, resulting in higher payments and insurance costs that are simply not affordable with the exploding costs of groceries, utilities and transportation. Even non-subprime borrowers are feeling the heat with many paying at least a $1,000 dollar monthly car payment on vehicles costing an average of 50K.
Analysts are now sounding the alarm that many borrowers may default on their car loans. A few missed payments can result in repossession, which has an immediate effect of making it difficult to get to work or find a job, and long term consequence of not being able to qualify for financing.
If you are facing a difficult financial situation it is important to get ahead of it. Bankruptcy protection often provides strategies that help individuals and families regain their financial footing, sometimes allowing an individual or family to keep a needed vehicle while discharging unsecured debt that is weighing them down.
If you have fallen behind on car payments, or have defaulted and are facing car repossession, contact an experienced bankruptcy lawyer immediately to discuss what options may be available to you. Peoria bankruptcy lawyer Charles E. Covey can help you determine if bankruptcy protection is a good strategy for your financial situation.
