Get current on payments before trading

Dear Terry,
I relocated from Miami and got behind on my payments, but I would like to return the truck and buy another one. I always paid on time. What should I do? Can I trade the truck even though I'm behind on payments?
-- Stacey

Dear Stacey,
Despite being behind on payments, you can always try to trade one vehicle for another. However, you're going to run into two problems.

First, the new loan would probably have to cover any negative equity on the old vehicle, as well as any penalties. Also, because you're behind, the interest rate will likely be much higher than what you're paying now.

You say that you always paid on time up until now. I suggest you contact your lender to see if they will work with you to get current.

Here are this week's reader questions:
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Can I trade a truck if I'm behind on payments?
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