If you are thinking about voluntary repossession and struggling with debt burdens, I would start out by suggesting that you get a free debt relief quote from one of Bills.com's pre-screened providers.
Both a voluntary repossession and a standard repossession have the same effect on your credit rating. They will both appear as repossessions, and will both result in a significant negative mark on your credit history. You will likely see your credit score drop substantially, as having repossession in your credit history marks you as a serious credit risk. However, if you truly cannot afford your car payments and are falling behind, it is likely that your vehicle will be forcefully repossessed if you do not take the initiative to surrender it first. The primary benefit of a voluntary repossession is that the costs associated with the process tend to be significantly less than those associated with a forced repossession, which could save you a lot of money as you work to pay off the remaining balance of the debt.
You should keep in mind that even if you voluntarily surrender your vehicle to your lender, the lender can still attempt to collect on any balance remaining on the debt after the car is sold at auction. This type of debt is referred to as a deficiency balance. The creditor may even file a lawsuit against you to collect on the unpaid deficiency balance. You should therefore only proceed with a voluntary repossession if you truly cannot afford the loan, as you will likely still owe the lender a significant amount of money, even after you no longer have the use and benefit of the property.
For more information about credit and credit scoring, I encourage you to visit the Bills.com Credit Score Information page.
In addition, Bills.com offers a wealth of information for consumers struggling with their debts, available on the Debt Help page.
I wish you the best of luck in resolving your financial difficulties, and hope that the information I have provided helps you Find. Learn. Save.