Step 1: Call your lender before you miss a payment
Ask about a deferment (moving a payment to the end of the loan), a due-date change, a loan extension or a modification. Lenders usually prefer this to repossession. Get any agreement in writing.
Step 2: Get free nonprofit credit counseling
A nonprofit credit counselor (look for an agency affiliated with the National Foundation for Credit Counseling) can review your budget and negotiate with creditors.
Step 3: Ask about one-time help
- Local charities and churches sometimes cover one payment to prevent job loss
- TANF emergency assistance may help in some states
- Military members may be protected by the Servicemembers Civil Relief Act (SCRA), which caps interest at 6% on loans taken before active duty
Step 4: Lower the payment for good
- Refinance with a credit union at a lower rate
- Trade down to a cheaper, reliable car (buying guide)
- Cut insurance costs (tips)
If repossession is unavoidable
A voluntary surrender still damages your credit and you may owe a deficiency balance. Talk to a legal aid office about your rights. If you lose your car, apply for a free car and see transportation help.
Frequently asked questions
Are there programs that help pay car payments?
There is no national program, but lenders offer hardship options and some charities, churches and TANF offices provide one-time help.
How many missed payments before repossession?
It depends on your contract and state law — sometimes just one. Call your lender as soon as you know you will be late.