How to Get Rid of a Car Loan

Mustang GT 2007 5 speed

You love your new car. But when you purchased it, you thought you could afford the payment on your budget. Of course, you had no idea that the price of gas and food was going to double. Now you are struggling to make ends meet, so how can you get rid of a car loan?

Things You'll Need

• Credit cards with low-interest offers
• Mortgage to refinance
• Unused gold
• Tax refund
• Advertise for sale or trade

Instructions

1. 

   Refinance your home mortgage for an amount equal to the balance of your current mortgage, plus the balance of you car loan, if you can do so without increasing your monthly payment. The interest rate on a home mortgage may be lower than the original car-loan interest rate. The interest paid on the car will be tax deductible because it is secured by your home instead of your car.

2. Sell your car and buy a used car that won't require car payments.

3. 

   Use your income tax refund or family inheritance to pay off your car loan.

4. 

   Attend a "Gold Rush Party" and sell your old and broken jewelry, dental gold and other items containing gold or precious stones for cash. If you can't find a Gold Rush Party near you, consider having one at your home and inviting friends and neighbors.

5. Use a low-interest offer from a credit card to pay off your car loan, especially if the offer is good until paid in full. Just remember not to charge anything new on the card or you will pay a higher rate on the new purchases.

6. Advertise in the newspaper to trade your car to someone who will take over payments and give you their used vehicle in lieu of cash for your equity.

7. Take a second temporary job and double up on your payments with your extra income. Extra payments reduce the total amount of interest you will pay on your loan so you will end up paying less. Extra payments go directly to principal.

Tips & Warnings

• Used vehicles may require more car repairs, so try to build up a repair fund in your savings account since you do not have payments.

Resources

• How to Attend a Gold Rush Party
• How to Host a Sell Your Gold Home Jewelry Party
• How to Make Money Using Your Credit Card Offers