With Cash for Clunkers over and many families on tight budgets, making timely vehicle payments can sometimes become overwhelming. Unfortunately, vehicle repossessions are on the rise, and having a car repossessed hinders more than just a car owner’s mobility. It has a severe impact on credit scores, which limits the ability to get loans or credit cards for up to seven years.

Better Business Bureau advises troubled car owners on how to avoid losing their vehicle and their good credit standing.

According to the American Bankers Association, the number of direct auto loans that were at least 30 days delinquent increased from 2.03 percent to 3.01 percent during the first quarter of 2009, and delinquent auto loans through dealers hit 3.4 percent in March.

As a result, the number of repossessed vehicles jumped 12 percent to 1.67 million nationally in 2008, and was expected to increase by another 5 percent for 2009.

“There are options for consumers to take advantage of in order to keep their vehicle,” said Carrie A. Hurt, president and CEO of BBB serving Central, Coastal and Southwest Texas. “The worst thing you can do when falling behind on a car payment is to ignore the problem.” If a vehicle is repossessed, the finance company will “accelerate” the note, which means the entire balance of the note is due in order to get the car back.

Since many consumers may not be able to pay the full amount, some companies allow the consumer to make the past-due payments in full in exchange for their vehicle.

In other cases, the finance company will sell the vehicle at auction, and it is usually bought for less than the outstanding loan. This means the consumer is responsible for a "deficiency balance," which is the difference between the total amount due and the auction selling price.

BBB recommends car owners consider taking the following steps if they fall behind on car payments.

• Contact the lender. According to the American Financial Services Association, auto repossessions cost creditors about $8,000. Therefore, the best-case scenario for both the vehicle owner and the lender is to keep the person in their car and making payments.

To that end, lenders will often work with troubled borrowers to develop more agreeable payment plans. Some possible options, according to AFSA, are loan refinancing, extending or deferring payments, changing payment due dates and waiving fees.

• Cut costs elsewhere. For many consumers who live where public transportation is scarce, a car is a necessity for getting to work, the grocery store or school. “If you can’t afford to lose your car, consider the items you pay for that you can afford to do without. Cable television, eating out and new clothes are just a few examples,” said Hurt.

• Choose a less expensive vehicle. If you can pay off the loan on your vehicle by selling it, consider finding a less expensive car with monthly payments that are within your means.

• Do the research before enlisting any debt management help. Some businesses offer assistance in debt management and repo prevention. Be extremely wary of offers and sales pitches that require upfront fees, and always research the company with BBB. Consider enlisting the help of a credit counseling agency as they offer inexpensive, and in some cases free, guidance on how to manage money.

For more advice from BBB on managing personal finances and debt, visit bbb.org.