Paying off a car loan can be tough and if you’re late with your installments, you’re not alone. More than one million people are 60 to 89 days late on their car loans. One of the reasons why you might find it hard to pay your car installment this month is because your paycheck is late. Although there’s nothing you can do to speed things up, there are ways to get enough money to pay the installment anyway. With that in mind, here’s a guide that will help you do it.
Assess your financial situation
One of the most important things to do when paying a car loan is to be aware of your financial situation at all times. This includes knowing exactly how much you make, how much you spend, and how much you’re left with to pay your car installment every month. Once you learn your paycheck for the month is going to be late, it’s time to take another look at your financial situation. Review everything and try to identify ways of tweaking your budget so that you have enough to pay your installment. If necessary, use a budgeting tool on your smartphone.
Talk to your lender
Talking to your lender is a must when you’re struggling to pay your car installment. It’s a great way to show that you’re responsible and that you actually want to pay off your loan. Depending on the lender, there can be quite a few solutions to your problem. If you let the lender know that a late paycheck is the reason why you can’t pay the installment, they might be ready to change the payment due date and help you avoid late payment fees. They might also be able to offer you a hardship program and lower your monthly fee, allowing you to pay your installment even though your paycheck is late.
Take a payday loan
Unfortunately, you have to be quite lucky if you want the lender to help you pay the installment. A more realistic option includes looking for a way to add more money into your budget in order to be able to do it. A foolproof way to do this is to turn to a provider of payday loans and get enough money to pay the installment before your paycheck arrives. Or you can just use the money you currently have and then take a payday loan to pay your bills or cover any other expense. Of course, once you get your paycheck, it’s time to pay the loan off.
Think about selling the car
Although there’s no need to sell your car because of one late paycheck, it’s still something you need to have in mind. In case your paycheck keeps arriving late and the lender isn’t able to give you a deal that allows you to pay every installment on time, ditching the car might turn out to be a better idea. You can replace it with a car you can afford no matter if your paycheck arrives on time or not. Obviously, whether or not selling your car is a good idea depends on how much you can get for it and how much you’re supposed to spend on a replacement vehicle.
When there’s a car installment that needs to be paid, not receiving your paycheck can become a real headache. However, if you do everything we talked about earlier, you should be able to come up with a solution. Once the installment has been paid, consider setting aside a little bit every month just in case the same thing happens again in the future.