Help With Car Loans Repayments

Car Loan Repayment Tips and Hints

There are a number of things that you can do yourself to help with your car loan repayments. Some of the following tips need to be implemented before you take out the loan, whilst others can be used throughout the term the car loan.

• The first thing that you should do is choose a car that suits your budget. There is no point is choosing an expensive car and then trying to make it fit your budget because you will just end up in financial difficulty.
• It is a good idea to actually borrow the minimum amount that you actually need to. If you put some of your own money into the purchase of the car then you will save lots of money on interest repayments over the course of the loan.
• Make sure that you have put in place a personal financial budget before you take out the loan, so that you know that you can afford the repayments.
• Whenever possible make extra repayments into your car loan account. If you get any bonus money, overtime or even a pay rise consider putting some or all of it into the loan. It will save you lots of money in interest repayments as well as time off the term of the loan.
• With most car loans you have a choice of how long you wnat to pay the loan back over. It is very important that you get the length of time right for your paritcular circumstances. If you get a loan term that is too short then you may find yourself having trouble meeting the repayments. On the other hand if the loan term is too long then your repayments will be less but you will end up paying a lot more for the car over the life of the loan.
• If you choose a variable interest rate loan and the rate goes down then make sure that you keep your fortnightly repayments the same.
• If you are the cautious type and would like the security of knowing exactly how much your loan repayments are each month then choose a fixed interest rate car loan.
• If you choose the convenience of financing your car through the car dealership then ensure that you have agree on the price of the car before you start talking about the loan. There is not point in negotiating a good deal on the loan if the dealership can then simply increase the price of the car or add on other things like stamp duty or on road costs.
• Unless you really need an unsecured car loan it is best to go for a secured car loan, as the interest rate and hence the repayments will be much less.
• Make sure that you read the loan contract thoroughly before signing it, especially the section about repayment amounts and whether or not they vary over the term of the loan. Certain so called features, like balloon payments, may look attractive because the repayment amounts are low and affordable, but you may get a surprise when you discover that you have to pay a large final installment.
• If you have the option of choosing weekly, fortnightly or monthly repayments then it is best to go for either weekly or fortnightly because it will save you money on interest repayments. Also if you get paid on a weekly or fortnightly basis then it will make budgeting much easier for you.
• Even though some lenders will insist on you having insurance you should make sure that you have comprehensive car insurance. This is a security for yourself, because the last thing that you want to be doing is paying off the loan for a car that has been in an accident and is now just a wreck.

Contacts For Help With Car Loan Repayments

If you find yourself having trouble meeting your car loan repayments, or you are already in arrears with your payments, then it is essential that you get help before the problem gets any worse. If you default on your debt then you will not only lose your car but you will also get a black mark on your credit rating, and this may seriously affect your chances of getting any sort of loan in the future.

Some people that you should contact in order to get help with your car loan repayments include :

1. The first place that you should call if you are having troubles is the bank or finance company that loaned you the money. They may be able to alter your repayments for a short period of time in order to help you through your problems.
2. If you think that your financial service provider has not given proper consideration to your request for help then you can contact the Financial Ombudsman Service on 1300 780 808. They are also able to help if you believe the lender is in breach of your loan contract by charging you an incorrect fee or appling the wrong interest rate.
3. Each and every state in Australia has a range of Financial Councellors that are there to provide you with free information and advice on your debt problems. They can assist you on what you should do next, give you options regarding your financial difficulties and help you when it comes to negotiating with your creditors. Below is a list of phone numbers for places that provide this type of service in each state :
       ACT : (02) 6257 1788
       NSW : 1800 808 488
       NT : 1800 898 500
       QLD : (07) 3321 3192
       SA : (08) 8202 5180
       TAS : 1800 243 232
       VIC : (03) 9663 2000
       WA : 1800 889 364
   
4. Another option open to you is to refinance the loan or use a debt consolidation company to merge the car loan in with any other loans that you have. This particular option is only really useful if you have addressed the original source of your loan troubles. This generally involves sitting down and drawing up a detailed personal budget and ensuring that you expenses do not exceed your income.

If there is some loan terminology or abbreviation that you are unsure about the meaning off then you can check out the car loan terminology page, which has a detailed explaination about some of the more confusing aspects of getting a car loan.

More Car Loan Information :

1. Car Loan Types
2. How To Get Car Loans
3. Car Loan Application
4. Car Loan Approval
5. Help With Car Loans Repayments
6. Car Loan Terminology