If your credit score has gone up, talk to your lender about refinancing your car at a lower interest rate to lower your payments.
If you can’t refinance, try making a large payment toward the amount borrowed on the loan and asking your lender to drop your payments.
Does paying principal lower monthly car payment?
Because you’ll pay off the principal faster, you’ll also pay less interest and reduce the overall cost of the loan. Here’s how to pay off your car loan faster by making extra payments toward your principal balance.
How do I get out from under a car payment?
You can get out from under a payment you can no longer afford.
- Refinance if Possible.
- Move the Excess Car Debt to a Credit Line.
- Sell Some Stuff.
- Get a Part-Time Job.
- Don’t Finance the Purchase.
- Pretend You’re Buying a House.
- Pay More Than the Specified Monthly Payment.
- Keep Up With Car Maintenance.
What can I do if I can’t afford my car payment?
What To Do If You Can’t Make Your Car Payments
- Modify Your Auto Loan. “One of the best options if you can’t make your payment and are in fear that you’re going to default is to call” your lender, Jones said.
- Refinance Your Vehicle Loan.
- Trade In Your Car.
- Let Someone Assume Your Loan.
- Sell Your Vehicle.
- Turn the Keys In.
- Let Your Car Be Repossessed.
- File for Bankruptcy.
Photo in the article by “Flickr”