A new report shows that motor loan defaults are increasing at an astounding rate as consumers try to balance their budget between rising mortgage costs and high rate motor loans. Most are deciding that their homes are more important and they are going into default on their high rate motor loans. However, experts are encouraging consumers to learn more about their options so that they can keep both their homes and their vehicles.”They simply decide they don’t want the car anymore,” says Larry Cohen, the Finance Director for Collins Auto Group in Louisville. “They don’t call the finance company, they don’t call us. They just drop it off, here are the keys, do with it as you will.”Louisville consumer rights attorney Ellen Friedman says that is the worst thing that a consumer could do. “It does not get rid of the debt by taking the car back. Let them know you’re having problems paying and ask them to reschedule your payments.”"They’ll extend the contract a month, give them an extra 30 days or maybe they’ll take a half-payment for a month or two to get them back current and try to catch it up in the future,” says Cohen.
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