There were some reports that indicated auto sales were up in the month of September, which may be the result of some consumers simply being in a position where they found affordable financing, while other reasons behind car sales will obviously vary, as some consumers are simply in a position where they need a new automobile and may have, once again, found an affordable option in their price range. Yet, we also saw data that indicated some consumers were seeing increases in delinquent sees in the area of auto loans, which could obviously lead to a need by these consumers to find more affordable payment terms on their auto loan and get assistance so that they can avoid missed payments.
Specifically, the American Bankers Association released a report saying that direct auto loan and indirect auto loan delinquencies rose in the second quarter of this year, which is part of a longer list of loan delinquencies that have been seen by consumers. In some areas there are reports that credit card delinquencies have become less of a problem for consumers, but this increase in loan delinquencies has led some to question why consumers are seeing problems in the area of these types of loans.
Understandably, factors like unemployment still remain a major hindrance in the personal lives of consumers, there are those who may have a variety of reasons for falling behind on such payments as their car loan, but advisers are urging consumers to make sure they act quickly when auto financing problems arise and a consumer can no longer make their car payment. While this advice that has been given by financial professionals is often common sense and universal, meaning it applies in any type of situation where the consumer has fallen behind on their debt obligations, car owners are obviously in a position where they can avoid delinquencies or default on their auto loan, as many Americans heavily rely on their car for a variety of purposes.
Yet, many lenders may be willing to help car owners who are having trouble making their auto loan payment, as a variety of problems that may have arisen in the lives of consumers could lead to situations where a little assistance in terms of debt repayment programs could keep these consumers from defaulting. In the end, lenders are obviously in a position where they want to be repaid and if a consumer has had a relatively stable in history, may have a good credit score, or can simply show that financial distress has arisen but they may be in a position to return to a more traditional payment at a later time, it could help when it comes to talking with a lender about more affordable terms.
While options like lower rates, lower minimum payments, or even forbearance on types of loans has been seen by some consumers who have appealed to their lenders for help, consumers do need to remember that there are no guarantees when it comes to getting assistance for making payments on their auto loan, so this may require a session with a credit counselor or other financial professionals, as some consumers may be in a position where they have to find other areas of their life where spending waste may be eliminated so that they will have more funding to meet certain obligations like an auto loan.