Late payments on auto loans have been creeping up lately. If that sentence puts knots in your stomach, you may be in need of some relief and practical solutions. Two questions that may come to mind:

Should you extend the term of your car loan? What about giving your car back to the lender?

That second one should be a last resort. Keep in mind, there are many thousands of people out there in a similar boat. According to Lendingtree, auto debt outstanding by ninety days or more recently increased by nearly 12%. But there’s more to the picture, and it’s not all bad:

  1. It’s common to take five to six years or more to pay off a vehicle.
  2. Some car loans are being paid off quicker than in recent years.
  3. The spike in new and used car prices has cooled off.

You deserve to be free of your auto anxiety. Most of all, it’s important to take a closer look at your situation and get help if you need it.

Determine Whether Larger Than Normal Car Loans Is Causing Your Car Stress

Not all car ownership stress is the same, as each driver’s financial situation is unique. But it can be a big relief to face up to it, no matter the cause. Maybe you were part of the crowd that took on oversized loans due to inflated prices a few years ago. If so, consumers shouldn’t blame themselves. In honor of the Fourth of July, find out what your options are so you can start feeling more financially independent.

Finding a Way to Make Your Auto Payments Reduces Car Ownership Problems

You may be one of the many drivers looking forward to the day the vehicle you drive is officially yours. Generally, folks who are able to should take steps to avoid repossession of their vehicles should they stop paying off their loans. There are risks to discarding a vehicle that is not yet fully paid for. Ending a car financing deal prematurely could even increase the interest owed on those monthly payments. Doing so can also lead to legal repercussions, which most drivers would prefer to avoid.

Refinancing Your Auto Loan May Be Easier Than You Think – But Make Sure It’s the Right Choice

Refinancing your auto loan is one way to reduce stress for someone who can no longer afford their car or is disadvantaged by unfavorable loan terms. The steps are fairly simple:

  1. Contact your lender to find out if you qualify for auto loan refinancing.
  2. Find out your Annual Percentage Rate (APR) and how much time remains on the loan.
  3. Discover how much your vehicle is currently worth.
  4. What is your credit score? A higher score may make it easier to get a better deal.
  5. Ask for an application – and be sure you have all the information and documentation necessary for completing it.
  6. If necessary, find a lender that will offer a financing agreement with lower interest and better terms.

However, while refinancing gives you more time, it may end up adding more interest in the long haul. Take your time to do the math and be sure you understand all the implications of a new loan before agreeing to one.

CFSC Auto Services Can Help Drivers in Illinois Reduce Their Car Ownership Stress This Month

There are other ways to address car ownership blues. Finding another source of income, selling your car, or voluntarily turning it in to the lender are some of them. Once you’re informed about the repercussions of each option, the smartest path forward will become clear.

As for car needs such as title and registration, local CFSC Auto Services throughout the Midwest are happy to help. Check out CFSC Auto Services online for a whole host of up-to-date tips on creating a financially independent future.