What Is a Car Loan Hardship Program?

Leland Terry
Published Jun 2, 2025


Sometimes, you might face tough times like losing your job or dealing with a medical crisis. It can be stressful, especially if you have a car loan to pay and fear that you might fall behind. But don't worry, some banks and lenders have a helping hand to offer.

It's called a car loan hardship program. These programs can ease your burden by giving you more time to pay or by lowering your monthly payments. Sometimes, they might even let you pause payments for a little while.
 

How These Programs Help


Car loan help programs can't wipe out your debt, but they can make it less stressful for a while. If you can make a half-payment, the lender might agree to change your loan dates and give you more time to finish paying off your car.

For example, a loan that was supposed to take 72 months to pay off might be extended to 76 months.

If you think you might need such help, it's a good idea to talk to your lender as soon as you feel trouble brewing. It's better to do this before you miss a payment so you can prevent any problems with your loan or credit score.
 

Different Ways to Get Help


There are many ways lenders can help you out:
 
  • Changing your payment date: This is useful if you tend to get your paycheck after your car loan is due.
  • Payment break (Deferment or forbearance): This means you can skip some payments, but keep in mind interest might still add up.
  • Paying just the interest: Simplify things by paying only the interest on your loan for a bit until you get back on your feet.
  • Lowering your interest rate: This means your monthly payments will decrease, but it may take you longer to pay off your loan in the long run.
  • Setting up a new payment plan: If you've missed payments, you can catch up without falling back on regular monthly installments.
 

Where to Get Help


Several lenders offer hardship programs:
 
  • Alliant Credit Union: They have programs that give you a break on your interest rate and payments.
  • CarMax: Allows you to delay payments or change your payment date.
  • Carvana via Bridgecrest: Lets you skip a month’s payment, but interest will still grow.
  • PenFed: Lets you miss one payment per year and may offer a longer loan term.
 

What to Watch Out For


When picking a hardship program, make sure to read the fine print. Some programs have fees like the $15 monthly charge at VyStar Credit Union.

It's best if you can find a program that doesn't keep adding interest if you're going through hard times.
 

How to Get Started


Different lenders have different rules. Some might check your income or credit score, and some need you to be an existing customer.

Do your research and talk to lenders to see what you need to apply. Once you apply, while you wait for a decision, you should keep up with your payments as best you can.
 

Other Ways to Handle Car Loan Problems


If a hardship program doesn't work for you, here are some other ideas:
 
  • Ask family or friends for short-term help.
  • Check if you can stop or lower your payments due to unemployment or a disability.
  • Look for assistance from nonprofits or public agencies.
  • Rework your budget.
  • Refinance your loan with someone else to guarantee it (a cosigner).
  • Consider selling your car for a cheaper one if it’s too expensive.
 

What Happens If You Don't Pay Your Car Loan


Not paying your car loan on time can have bad effects. Your lender might take your car away, and it will hurt your chances of getting good loan rates in the future.

It can also seriously damage your credit score, making future loans costlier and harder to get.

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