The largest monthly payment that most people have after rent or a mortgage
payment is a car note. For most individuals, life without a car truly means the
inability to get anything done. If you have lost a job and need to get another
one, having a car is the difference between working or continuing to be
unemployed.
In addition, for someone with perfect credit, missing a car payment can
bring instant terror. Besides the fear of having a car repossessed, knowing
that the lender may report to late payments or non-payments on your credit
report bring about even added stress.
The key to avoiding all of this is to contact your lender the moment you
suspect that you will be unable to make the car payment. Let the company know
what is causing your lack of funds, and when you think that you will have the
problem correct.
A little secret that most people are not aware of is that many major car
lenders have a plan in place to help you. By calling the lender, you can ask
for a one to two month deferment on your car note. When you ask for a
deferment, you are asking the lender to add these payments onto the end of your
car loan in order to give you a couple of months to make payments.
While it may seem a little humiliating to do this, you are protecting more
than your car when you do this. Most car lenders who will grant a deferment
will not report anything negative to the credit bureaus. So, you are given a
month or two to be able to make your car payment, giving yourself the piece of
mind of knowing your car is not going to be taken away, and protecting your
credit score.
Credit Cards
When you are lacking funds, especially due to the loss of a job, your credit
cards often become very important. Many people turn to them for their living
expenses to get them through the tough times. However, if your credit cards are
near their limits, they quickly become an additional burden to worry about.
Again, once you discover that you are going to be unable to pay at least the
minimum payment, immediately call the credit card company. Explain to them what
is occurring in your life, and ask what can be done to assist you.
Some credit card companies will actually help you by deferring the payment
for a month so that you can catch up. There are other companies, however, that
will not assist you at all. The key to finding out your options is to call each
credit card company and simply ask. There are no hard and fast rules in the
world of plastic.