i have been paying as much as possible but it is not enough according to the bank. it should be okay if i pay 300 a month right, if not what kind of trouble am i facing.
the loan is for 4000 and i am suppose to pay 465 per month. i have been paying 300. will i go to jail/
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They will repo the car.
No your car will be repossessed. You signed loan papers for 465 a month not 300. Either pay the full amount or lose your car
You will probably not go to jail but they will come a repo your car. You can not decide how much you are going to pay. You can always pay more but never less.
Now, if your car gets repo’d, kiss your credit good bye for the next 8 years. Remember this, if you take the car back to them and “turn it in” it still counts as a repo on your credit report!
Don’t mess up your credit, it is not worth it! If you can not afford the car, try selling it to someone on craiglist.
You do need to call the bank and try and work out something to pay off your back payments, if you don’t, you will wake up some morning and find your car gone!
You will not go to jail. The car will be repossessed and sold. The bank may sue you for the balance (including penalties, interest, selling fees, etc.). If the bank gets a judgment against you, it can garnish your wages, seize your bank accounts and lien your real property. Judgments are valid for a long time (20 years in some jurisdictions) and earn interest at better than market rates until paid off.
Your credit score will also take a hit and the negative information will stay on your credit reports for 7 years.
That’s a very small auto loan. You agreed to pay $465/mo. That’s what you have to pay. No quibbling. If you don’t pay that in full every month, then either pay off the balance in one lump sum and clear the debt, or they repo the car. You will owe them the difference between what they get for the car at auction and your balance due.
No jail time, just a irreparably damaged credit history, and the inability to obtain affordable credit rates down the road.
As a last resort, try paying the loan payments with a low introductory rate credit card. That will give you enough time to make the rest of the payments. And it won’t cause a repo (and the subsequent destroyed credit history).
I don’t usually recommend getting a credit card balance, but you are in a tough bind, and purchased a loan that you couldn’t afford.
I will start buy saying that I am a collector for a bank and i worl on your type of loans.
the bank can and probably repo the car if you do not met the terms of the loan. I would cal them and talk to them about refinancing the loan, in todays maket they really do not want to pick up your car, but the will. try to get them to re-write the loan for the $300 a month that you can afford. Explain to them the reasoning as to why you can not make the $465 a month payment and be prepaired to back it up with documentation, IE unemployment, change of job etc.
Good luck!