What to do if you cannot afford your car payments | Citypress

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Personal finance | As lockdown drags on and job cuts continue, ever more people are facing financial difficulty when it comes to paying off debt. Here's what to do if you cannot afford your car payments

As lockdown drags on and job cuts continue, ever more people are facing financial difficulty when it comes to paying off debt. City Press has received many queries from readers about what to do if they cannot afford their car repayments. The bottom line is that you must start with having a conversation with the bank – sooner rather than later.

As Neeyna has never missed a payment and is in good standing, the bank is more likely to come to a favourable agreement.There is a cost to repossessing a car. There are legal costs, and it takes time. If a client is willing to negotiate and pay something towards the car, then we are willing to come to an agreement.

But it does depend on the situation. If you recently bought the car and there is a significant amount outstanding – and you do not have an income – there is not much room for negotiation. In this situation, your best option is to sell. “If a client uses this platform and we know they received the best price for the vehicle, we have various settlement plans linked to HelpUSell to assist the customer rather than face a long legal process,” says Mkhize.

“We want to find a solution that allows a client to walk away from the transaction in a manner that does not compromise the bank or client. It is still important to remember that this is depositor’s money – so we have a responsibility to collect outstanding debt.”

 

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