Affects of Car Loan Default
By Joseph Samson
Print    Email    RSS   

In the current economic scenario, where the economies around the world are facing problems of high inflation, unemployment and bleak job opportunities in the market, loan repayment is hitting hard on the pockets of many people. People who once had good credit and made the loan repayment on time are now under constant fear of defaulting on their loans.

For, every person who has a loan to be paid, probably the major part of his monthly budget is set aside for repayment of the loan. And one would not want to default on their loan for obvious reasons. The first and most important reason is that, it will destroy the credit history and secondly, one might lose their loaned possession.

Let us specifically discuss the affects of car loan default. Let's look into some of the important points that can cause car loan default.

When is a person considered a defaulter?

Technically, a car loan default happens when a customer repeatedly fails to make the agreed car loan payments to the bank that loaned the purchase of the car. Usually, the car loan agreement that an individual signs with their bank will have these terms and conditions clearly mentioned in the agreement. Details about the car loan, loan repayment obligations and the possible reasons for defaulting on car loan are usually explained in the agreement. The agreement will also provide the risks involved and the possible solutions in case of a default.

Though the term ‘default' has no universal definition to it and differs from case to case, the general meaning of ‘default' is if an individual is 30, 60 or 90 days late on making one or more payments. It is very important to know what one should do when one realizes the fact that they might not be able to make the car loan repayment for the month and avoid being tagged as a customer at ‘default.'

How to wade out of the trouble?

The problem pops up when the borrower realizes that they are unable to pay back their car loan. Borrowers should call up their lender/bank to cite and explain the reason honestly for the delay in payment. The lender might have heard the excuse thousand times before but being straightforward could work in the customer's favor and this could then eventually bring about a mutual adjustment that would prove beneficial for both the parties.

Apart from this, there are many other options available to a car loan borrower.

Borrowers can try to talk and convince the lender/bank to extend the car loan duration. For instance, if one had originally taken a car loan for 36 months, one could request it to be extended to 48 months. This will ensure that the monthly commitment to pay the EMI is reduced.

Borrowers can also ask the lender/Bank to allow making a deferred payment. It means that borrowers would be allowed to skip the current month's payment and make it at a later date. The borrower can explain the lender that giving them a month's time for the repayment can give them some flexibility to pay.

Along with it, borrower can also convince the lender/bank to change the payment due date permanently.

Late charges are often levied on late payments. If the borrower feels that these accumulated late charges is actually straining them from making a prompt payment, they can always ask their lender/bank to waive off these fees. If it would help the borrower to make a timely payment, the lender/bank might agree to waive off the late fees.

Page  | 12 |  
(Comments Posted : 7) Post Your Comments
1. We specialize in Bank Guarantee lease and sales, there are two types of bank guarantee which are Direct Bank Guarantee and Indirect Bank Guarantee. Its used as Bid Bond, Payment Guarantees, Letter of Indemnity, Guarantee Securing Credit Line, Advance Payment Guarantees, Performance Bond Guarantee E.T.C. We have project funder with cutting edge and group capital fund who can finance your signatory projects and help you to enhance your business plan. Our provider's financial instrument can be used for purchase of good from any manufacturer irrespective of location. We are mandate to providers who specialized in BG, SBLC MTN, CD, Non collateral loan, confirmable Bank Draft and other financial assistance from AAA rated bank (Prime Bank). Intermediaries/ Consultants/ Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will work together for the benefits of all parties involved. Our terms and procedures are so flexible and workable by RWA clients. Our lease rate is (5.0 + 1)%+x%. X% IS Lessee broker's Commission and he determines his commission. If interested, email :
skype : fazliq.kader
Fazliq Kader (Posted: Apr 12, 2016)
2. Greetings to you all! My name is Mr Abdul Majeed, a private and reputable loan lender. I render all kind of loan to individuals with an interest rate of 3% with a repayment length of 1 to 30 years maximum. A lot of people have benefited from my loan offer and it have change their lifestyle positively giving them the opportunity to create their own business.
I render loan such business loan, agricultural loan, education loan, house loan, automobile loan, etc. If you are in need of a loan, kindly fill the borrower form below with your valid details and reply back for more information at

Full Name:
Home Address:
Amount Needed:
Currency Needed:
Loan Duration:
Monthly income:
Phone: Number:
Purpose for Loan:
Website you saw our ads:

Note: All reply should be forwarded only to for immediate attention.
Abdul Majeed (Posted: Dec 4, 2015)
3. Welcome to Thomas Credit Firm, I am an international business man and Lender that has offered Loans to so various individual and firms in Europe, Asia, Africa and other parts of the world. We give out our Loan for a interest rate of 2% per annul for a minimum of 100.00 to a maximum of 100,000,000.00 rubles, dollars, pounds, euros, etc. The maximum loan term we can offer is 30 Years at fixed interest rate.
Available Loans
* Personal Loans (Secure and Unsecured)
* Business Loans (Secure and Unsecured)
* Combination Loan (Secure and unsecured)
* Consolidation Loan (Secure and unsecured)
* Mortgage Loans (Secure and unsecured)

Interested candidates should please contact us today for your online quick and easy loan without collateral deposits. Email:

Thomas Dawson (Posted: Jul 9, 2015)
Show All Comments
 Select a product:

 Select a product:

12 point conduct checklist for bank and...
Manage your loans, avoid recovery agents
Insider secrets of Car Loans in India
A chronicle of excesses by loan recovery...
Carnival of Indian Personal Finance Blogs # 8

PℂMℂ ESCORTS 9766783211 Auℕdh Caℓℓ Girℓs...
my loan stustus
how can i check my statement of account of car loan
i want my loan account statement on line but i do...
09988559083 Amritsar Escorts - 09988559083 ,...

SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive