I Lost My Job, How Do I Keep My Car?

Losing a job is always a stressful time, however, if it means you may lose things that are essential to getting more employment, it can affect you even more. Cars have become a crucial part of our lives. They are used for work, to shuttle kids, to visit family, and to job hunt. The majority of people commute, and there isn’t always a form of public transportation to conveniently get you to and from places you need to be. And that leaves the important question: How do I pay for my car if I’ve lost my job?

Don’t Panic, Keep Calm

The worst thing you can do when something unexpected and stressful happens is to react in a way that further impacts the situation. Although losing a job may seem insurmountable, it certainly will be if you approach the solution with panic and desperation. If you have ways of staying calm, use them. Go for a walk or take deep breaths. There are ways around the situation, especially if you use a level head.

Steps to Take Right Away

If you know that you’ll be struggling financially, you should always contact your lender and make them aware of what's going on. By hiding it and missing payments, you lose the opportunity to see what they may do to work with your circumstances. Many times that honesty allows them to take action before it’s too late. Some of the things lenders might be able to do include:

• Defer the loan: If you’ve paid on time consistently, lenders might be able to defer the loan for a month or two depending on their capabilities. Deferment can give you some breathing room until you’ve figured out your next steps.
• Restructure the loan: Restructuring can get the payment to a number you can afford while you look for employment.

Finding a Source of Income

There are a few steps you can take to ensure you aren’t without income when you lose your job. It all depends on your previous employment, how you lost your job, and getting creative. Start by finding out if you’re able to collect unemployment. If you’re not, there are other programs you can apply for in the meantime. Whatever you do, don’t delay because of embarrassment. The quicker you get on top of things, the less chance you have of getting in a financial hole.

If assistance isn’t the right route for you there are a few other things you can try:

• Borrow from family or friends: Take this step cautiously. Only do it if you know you can pay them back eventually, and will actually do it.
• Cut back on expenses: It’s tempting to want to save your cable or daily lattes, but in the grand scheme of things, how important are they? A subscription to Hulu or Netflix is a tiny portion of the price of major cable providers. Sure, shows aren’t always current, but they’ll do in a pinch. Plus, you’ll enjoy the commercial-free aspect. If you love lattes and not drip coffee, check Craigslist for a used espresso maker at a good price. You can easily save an ample amount each week by brewing up your coffee at home. Take a good look at where your money goes and make some hard decisions that help you cut your budget. It comes down to needs versus wants. Sometimes you need to only spend on the absolute basics so you can keep your car.
• Capitalize on your skills: Okay, so maybe you had a really great job that paid well, but that doesn’t mean you should turn your nose up at babysitting, dog walking or finding other temporary work that helps you hold onto your vehicle. If you have any experience with crafting or creating, there are online sales forums as well. The internet has excellent articles on ways to make some extra money - read them.
• Sell, sell, sell: Go through your home and purge. It’s amazing the income you can make on things you don’t use, need or want. Now that you have the time, do it. Remember to use the extra time for the occasional job interview as well.

Other Options you Have

The last thing you want on your record is negative debt or a repossession. If it comes down to that, see if you’re able to trade your car in for a less expensive one. You can also sell it. These aren’t always the optimal options, but they can save you money and hardship in the future.

Keep Looking

The key to facing a job loss is to move on. That means you need to look for new employment consistently and often. It can get challenging to experience rejection, but remember, the right job is out there. You just have to keep looking.