Finance Globe

U.S. financial and economic topics from several finance writers.
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What You can do About a High Car Payment

woman-sad-car

Have you come to find that your car payment is entirely too high? Is this having a negative impact on your budget and finances as a whole? Are you hoping to make a change?

It’s extremely common to bite off more than you can chew when purchasing a vehicle. You get so excited about pulling the trigger that you overlook the impact your new payment will have on your financial situation.

If you find yourself in this position, there are several things you should consider:

•    Get rid of the vehicle. You can trade it in or sell it yourself. Either way, getting rid of your vehicle is often the best way to eliminate or lower your payment. Even though you may be attached to the car, this step will give you the relief you’ve been seeking.
•    Refinance your auto loan. This doesn’t always make sense, but it’s something you should at least look into. By lowering your interest rate and/or stretching your term, you will find yourself with a lower monthly payment.
•    Ride it out. This is easier said than done, but it’s something to at least consider. If you can adjust your budget to suit your payment, you may want to do just that. This is one of the better ideas if you don’t have a long time left on your loan.

These are three of the better ideas to consider if you have a high car payment that’s been eating at you. By comparing the pros and cons of each strategy, you will soon have a better understanding of which one makes the most sense for you.

Your car payment may not seem high right now, but things can change as the months go by. If you find that you need to lower your payment, think long and hard about these ideas. 

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Comments 1

Frank on Wednesday, 20 December 2017 17:45

Cars never hold their value. I usually recommend to try and ride it out, but refinancing is sometimes an option for certain situations.

Cars never hold their value. I usually recommend to try and ride it out, but refinancing is sometimes an option for certain situations.
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Sunday, 18 August 2019

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