All across the country, Americans face skyrocketing car costs, stagnant wages, and the worst inflation in 40 years. That could mean a car loan debt crisis for Memphis in coming months.
Here’s what our Memphis car debt attorneys know about the problem and what you can do about it.
The Root of the Car Loan Problem
There are a lot of factors contributing to rising auto debt:
Cost of Cars
Covid, war in Europe, and inflation all impact automakers’ ability to make and ship new cars. As a result, prices have jumped for both new and used vehicles all over the world. Recent data shows that in May 2022, car loans reached an average of $712/month. Some people even pay more than their mortgage, just on their car!
Loss of Safety Nets
During the first two years of the pandemic, the government offered certain programs to help people pay their car loans. For example, they provided auto loan deferment programs for people who struggled to pay their debts due to Covid-related job loss. And they sent stimulus checks to help cover basic expenses.
Without those social safety nets, some people can’t make ends meet.
Not only have cars become more expensive; so have gas and maintenance. Inflation has impacted nearly every part of our lives. Many Memphians now have to choose between their car payments and other expenses. And when it comes to housing or transportation, housing tends to win.
This year, Google searches for “voluntary repossession of car” reached the highest level since the summer of 2008. People simply don’t know how to pay for their cars anymore.
And altogether, these factors mean there might be a massive increase in repossessions coming this fall.
How to Stop Repossession in Memphis
If you’re worried about losing your car, you have options. We help Memphis families get out of debt, and we can help you keep your car so you can get to work, school, and everywhere else you need to go.
Usually in a situation where you might lose your car, you’ll want to consider Chapter 13. We help clients use Chapter 13 to set up a payment plan based on your specific situation. This allows you to keep your car and any other assets, like your home. And the courts approve the plan, so your creditors have to comply by law.
This means no more threat of repossession, no more wage garnishment, and no more worry.
Clients sometimes ask whether you can keep your car if you file Chapter 7? That’s possible if you’re current on your car payments or can become current in roughly the next 30 days.
Either way, you’ll want to speak with our Memphis bankruptcy attorneys to get started. The conversation is completely free, and we never charge extra to answer your questions or give you support along the way. That’s why we’ve been awarded multiple times for client satisfaction. We’re here for you, and we show it.
You can survive the car loan debt crisis, and we can help. Contact us today at 901-327-2100 or use the form below.