How to Get Rid of a Bad Car or Upside Down Car Loan

Save

Have you ever heard someone say, "My car loan is upside down"? Well if you have heard this statement, this is a bad car loan. This means that the car is not worth the money that is owed on it. Let's say that the car is worth $5,000.00 and the person owes $8,000.00 on it. This can be due to refinancing the car, paying too much in the first place for the car, paying too much interest and other reasons. Even though this is a difficult situation to be in, you can get out of a bad car or upside down car loan.

  • Sell your car at a loss. Sometimes you have to cut your losses and move on to your next venture. Get what you can for the car and relieve yourself from the stress associated with this bad car loan. This method will also help you keep or get your credit report together. Keep in mind that to sell the car you still have to pay your lender off first.

  • Borrow enough money to pay the bad car loan off. Try and get a lower interest loan using collateral like a home equity line of credit. Another option is to obtain an unsecured loan. To find one, check with your credit union or bank and see if you can get an unsecured credit loan. You can then take that loan amount and apply it to the balance of your bad credit loan or remaining balance after you sell the car.

  • Find ways to make extra money to pay it off. You can work overtime, get a part time job or start a part time business. Put all of the extra cash toward getting rid of that bad car debt.

  • Keep the car. Even though you have a bad car loan you should continue to pay the note. Add additional funds to the payment when you can to speed up the process of paying off the note. Let it be a lesson to you not to get into this situation again.

  • Use any extra money to smash this bad car debt. If you get an income tax and/or stimulus check, bonus from work, interest from an account, inheritance or any kind of extra cash feel obligated to use it to pay off that bad car loan.

  • In closing, you can get rid if a bad car loan by using one or more of the above suggestions which are sell the car at a loss, borrow enough money to pay the car off, find ways to make extra money to pay it off, keep the car and continue paying for it and use any extra money that comes your way to squash your loan.

Related Searches

  • Photo Credit www.istockphoto.com
Promoted By Zergnet

Comments

You May Also Like

  • How to Get Rid of a Car

    Don't let your used car sit around collecting dust. If you have a car that you want to get rid of, there...

  • How to Refinance an Upside Down Car Loan

    Refinancing an auto loan is typically done as a way to reduce payments and save money by securing a better interest rate...

  • How to Get Rid of Bad Gas in a Car

    Cars need gasoline to run properly. However, even on a full tank, drivers can experience difficulties. The engine not starting, lack of...

  • How to Get Rid of Loans

    Getting rid of loans could help you become debt free. However, not all loans are easy to eliminate. Secured loans such as...

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!