Agreeing to voluntary repossession is a lose-lose situation for the debtor because it will not only affect their credit but might jeopardize their ability to get to work thus affecting the ability to pay other bills. Before considering voluntary repossession, look at other options that are available and leave repossession—voluntary or not—as a last resort. Consider one of the following options:

• Negotiate with your lender and show you are willing to honor your commitment. Be willing to work out a payment arrangement but don’t agree to anything immediately. Review your finances to assess what you can afford—be very careful because reneging on a revised agreement will not work well in your favor. In addition, make sure you get the agreement in writing. The agreement should state the required monthly payments and the creditor’s assurance not to repossess the car as long as you stick to the revised agreement. If possible, work out an arrangement where the creditor reports the account as current.

• Explore options for selling the vehicle. The lender is certainly not going to dig too deep to find the best resale price for your car, so you want to take it upon yourself to see what a private buyer is willing to pay. If you find a buyer willing to pay substantially more than the Kelly Blue Book Value, you can present the opportunity to the lender and explain the benefits it provides for everyone involved.

• Consider debt consolidation if you are in a position to do so. One option in this aspect might be a balance transfer from credit cards. Many credit card companies allow consumers to transfer balances from auto loans, which gives you the opportunity to pay off the loan, get the title, and begin to repay what is now an unsecured loan with more favorable terms. While this option is excellent, it requires the debtor obtaining a credit card with a credit limit sufficient to pay off the car and terms that make it financially sound.