Some helpful hints on getting out from your vehicle payment.
In this day and age many people are struggling due to the saddening economy. Because of layoffs and other unforeseen circumstances many people have bills that they are struggling to make one of these bills could be a car loan. Here are some helpful hints to get out from this burdening bill.
The first is very simple; although lots of people have a hard time doing this, pay more every month towards the principle of the loan. You will pay more out of pocket by just paying the minimum amount every month. Loans work just like a credit card the more you pay on the principle the less you pay on interest and the faster you car will be free and clear.
Secondly, you could always turn your car in. Rather than having the vehicle repossessed take the car back to the place where you bought it. Tell them that you cannot make the payments and that you would like to give it back to them and walk away. Yes, this option will hurt your credit, however if they have to come and take the car from you, your credit will be hit harder.
To make your payment less each month, you could always refinance your car for a lower interest rate. This is what I decided to do when I was having a hard time; I saved sixty dollars a month and decided that I would continue to place the sixty dollars towards my car. This allowed me to pay less on the principle and pay my vehicle off faster.
Lastly, you could always sell you car for what is left on the loan. Then go and pay cash for a vehicle from someone or someplace else. It may not be the vehicle you want right now but it will get you from point A to point B. Once your financial situation gets better you can always go out and get the car of your choice.
Hopefully, these different options help you in your journey to leaving your car payment behind.
Published in: Personal Finance