The motor loan industry is continuing to have problems as more homeowners are forced to pick between defaulting on their home loan or defaulting on their car loan. This could spell more trouble for years to come in auto sales as these consumers try to deal with the damage that a motor loan default can do to your credit rating scores.”The auto industry is not exempt from the current stress that’s out there in the economy,” said Carol Kaplan, spokeswoman for the ABA. “If you’re going through it right now, you’re not alone.”For those who have already had a delinquent motor loan, the news isn’t all bad. “Yes, you can recover,” said Philip Reed, consumer advice editor at Edmunds.com. “But essentially what you need to do is … start again building your credit up. … It does take quite a while.”"Overall, people are reluctant to face up to money issues — whether that’s what your credit card interest rate is or if you’re finding you’re falling behind on your auto payment,” said Eric Hoffman, spokesman for AWARE. “Sweeping it under the rug is not going to make it go away.”
Related reading: Motor Loans
Comment on this article