Managing Your Secured Debts
If you are having difficulties coping with your debt, especially unsecured debt (i.e. credit card debt, medical bills, personal loans), we encourage you to contact us. Many of our clients have attempted in the past to create a workable budget that will enable them to become debt free, but to mixed results.
Bankruptcy Relief Network specializes in assisting families like yours with their unsecured debts in order to provide them with real debt relief.
Your circumstances are very different if you are encountering problems paying off your secured debts. Please read the following for ideas about how you can avoid repossessions and foreclosures. Secured debt is the most critical of all debt forms because the creditor has the ability to seize property if it is believed that the debtor (you) is acting in bad faith with regards to payment.
An Important Difference
First of all, most automobile financing agreements are structured to allow a creditor to repossess your car if you are discovered to be in default. To add insult to injury, it is important to note that no notice of repossession is required. And if your car is repossessed, some agreements state that you may have to pay the full balance on the loan plus towing and miscellaneous costs, to retrieve your car.
Failure to act quickly often results in the creditor selling the car. This is why if you are having real difficulty making payments, you may want to consider selling your car immediately and using the proceeds to pay off the loan. Using this method, you avoid not only repossession costs, but a severely negative addition to your credit report.
The truth is, most lenders will with you to define new terms if they believe that you are acting in good faith and your financial difficulties are temporary. The results of contacting your lender can vary. Many reputable lenders may reduce or suspend your payments for a short time period. When the payments are resumed, however, you may have to pay an additional amount toward the past due total.
In some other cases, your lender may be able to extend the term of your mortgage or lower your monthly payments. If this is the case, always be certain to ask whether additional fees will be assessed for these changes, and ensure you total up how those charges will be made over the long term.
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