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How can you lower your car payments?
I’ve had the same car loan for about a year now and the payments are killing me. It takes up so much of my income that I can barely spend any money on myself. How can you lower your car payments?
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m so sorry to hear that. Luckily, there are a few ways you should be able to alleviate some of that financial stress.
To lower your car payments, you can try:
- Refinancing your loanwith theJerryapp. On average, borrowers who refinance pay $85 less toward their loans each month. The Jerry app can help you find the best refinancing rates.
- Asking about car loan modification. This would allow you to stay with the same lender rather than applying for a whole new loan like you would if you refinanced. Reach out to your lender and let them know that your current loan is causing you financial hardship. They may be able to reduce your interest rate or extend your loan term to lower your monthly bill.
- Selling the car. You can then use the money from the sale to pay off your car loan. If your car isn’t worth enough to cover the remaining balance of the loan, you’ll still need to pay it off to avoid facing repercussions. However, you might just turn a profit!
- Trading in your car to a dealership and buying a more affordable car that requires lower monthly payments.
Whatever route you choose will be more beneficial to you than defaulting on your loan by making partial payments—or skipping payments altogether. If you do, your credit score will drop and your car will be repossessed. So, rather than dealing with that stress, try these solutions first.
View full answer
- Gregory R.
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