Most cars these days are financed or leased, how you find a good and cheap car loan, we have already written in various places.
If you also pay off your car with the help of a loan, then imagine the following situation.
You come home from work, take the mail out of the mailbox, and over a cup of coffee at the end of the day, you look through your mail. Below a letter from your bank where you have your car loan, so you Ihn open the shock: not the usual advertisement for a new cheap financing, no it is the:
Cancellation of the car loan
Car loan canceled – what now?
In the notice is then unambiguous in it that you are within a short time to redeem the loan, that is, the remaining open money in one fell swoop to transfer!
In this termination of the car loan is then also directly pointed out that if you do not meet this requirement, your car will be collected.
What to do now?
The most important thing: do not bury your head in the sand! You have to react and do your best to find a solution, otherwise you will be without a car, and you will have to pay high fees for the whole thing.
If there is a mistake in the notice of termination?
Mistakes are human and happen, even computers can make mistakes, it is rare but still happens that the cancellation of the car loan due to a mistake happened.
So first look at what is called as a reason for termination, is there for example that payments are open, but you find them on your bank statement, then this can usually be clarified quite quickly with a phone call to the lender.
Missing installment payment has led to termination?
Most common reason why a car loan is canceled, you have not paid several installments. And from consumers one often hears that already after the second unpaid installment the notice flutters in the house.
No matter what the reason for the cancellation is, the first thing you should do is talk to the bank. Because if you let valuable time pass, it usually means only one thing: The whole thing will be more and more expensive for you.
Call the bank and ask to be put through to an appropriate representative. Ask what you can do so that the cancellation of the car loan can be withdrawn.
Arrange installment payments for delinquent installments
One possibility is that you agree on an installment payment on the delinquent installments, but this also means that you now have an even higher burden than before. Because the delinquent installments are divided over up to 12 months, and come on top of their normal monthly installments. If you are financially at the limit, this is usually not the best solution. Of course, it always depends on the amount of delinquent payments.
Contact the debt counseling
Often, the professionals from the debt counseling show you a few ways to get around the termination of the car financing. But here you have to be persistent to get an appointment as soon as possible. Especially in big cities the debt counseling centers are very busy.
Special case car loan
In the case of a normal installment loan or real estate financing, the banks proceed differently than in the case of a car loan. Because here it is often easier, because the bank has the car title as a pledge. So there is no need to seek wage garnishment or account garnishment, the bank has the option to give you a deadline, if you do not meet it and transfer the outstanding loan amount, then your car will be picked up by a collection agency, the bank is the rightful owner of your car as they hold the motor vehicle registration document.
What to do if the bank will not talk to you?
If there is no prospect of an amicable agreement with the bank, and it sticks to the termination, then there's nothing to shake, ask for a postponement as long as possible. Every day can be worth a lot.
Now you must immediately look for a new loan to replace your old with this money. Do you have the sum maybe available and invested somewhere fixed, then cancel this investment as soon as possible, and try to get hold of this money.
Otherwise, use the Internet to search for a cheap loan. The fact that the bank has cancelled your loan does not make the search any easier, but you must not give up at the first rejection.
With any luck you come by the notice and the search of a new bank even better off than before, because if the credit was old and expensive, and you put more effort in the search this time, then it may happen that you get the new money on better terms than before, but that would be the ideal case.
Conclusion: the most important thing you can do if you have received the cancellation of the car loan: take care of it! Sitting out is useless, it will only be unnecessarily expensive and after a short time your car will be picked up.