How to Get Rid of Old Repossession Charges
Unfortunately, repossessions do happen. If you purchase a vehicle and get an auto loan, the inability to make payments toward paying off the loan will most likely result in a repossession.
Most repossessions come without warning. You can be grocery shopping just like any other day, and walk out to the parking lot to find that your vehicle is gone. Many people would think that their vehicle was stolen. If you haven’t been making your payments, unfortunately, your vehicle was most likely repossessed.
If My Car is Repossessed, Do I Still Owe the Balance?
Once a vehicle is repossessed, the remaining balance on the vehicle is still owed. In most cases, the lender will try to resell the vehicle to make back as much money as possible. If they are able to do so, then you will still owe the remaining balance that the lender was not able to retrieve.
When Happens When a Car Gets Repossessed?
Depending on the lender, you may be sued for that remaining balance. Banks, more often than not, will sue for the remaining balance of their car loans once the car is repossessed.
How Long Does a Repo Stay on Your Credit?
Repossession charges stay on your record for 7 years. That is a long time for something to stay on your record. Even though the effects of the repossession charges will lessen over time, it will still have an effect on your credit throughout the 7 years. Having something this big on your credit report will make it extremely difficult for you to get loans in the future.
How Can I Deal with an Old Repossession?
Luckily, there is an option that can not only help lower the amount of money still owed on the repossession, but it also can get the repossession charges taken off of your record.
Debt settlement can help clear your record from old repossession charges. Debt settlement companies will negotiate with your lender to help lower the amount of money that you owe on the repossession. The reason that many lenders are willing to negotiate is because they would rather get some of the money that is owed, rather than nothing at all. By lowering the amount owed, it will be easier for you to make the payments and will be paid off in just a couple short years.
If your lender agrees to the settlement, they may also agree to take the repossession charges off of your record once the settlement has been paid off. If they agree to do so, make sure to get it in writing with a signature so that they cannot go back on their word.
Old repossession charges can have a lasting impact on your life. In order to leave the past behind you and move forward, consider debt settlement. It is one of the fastest ways to help you get your life back on track.
Get Experienced Help with Debt Relief Today
If you have old repossession charges, or any other forms of unsecured debt, and are looking for a trusted debt settlement company for help, contact us today. We want to discuss your debt settlement options with you so that we can help give you a brighter future.