How to Lower Your Monthly Car Payments

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By kristara
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Lower Your Monthly Car Payments

With today’s economy more and more people are finding it difficult to make their car payments. You think to yourself “if only my payments were lower, I could keep the car”. It is possible to lower your car payments.

Difficulty: Moderate

Instructions

Step 1

Call the lender who is holding your loan. Explain your situation to them, lost job, piles of other debt whatever the reason your loan has become unaffordable. Ask them to extend the terms of your loan. This will involve rewriting your loan and usually comes with a penalty. Your 48 month loan can become a 60 or 72 month loan. It will lower the monthly payment, but in the long run you will be paying more because interest will be charged for a longer period.
Step 2

Take a personal loan from a Credit Union to pay off the car. Credit Unions usually have lower interest rates than banks. This method will also save you money on insurance premiums because now that you own the car rather than an auto lender you can raise your deductibles. When you have an auto loan the lender dictates the amount of your deductibles.
Step 3

There are companies who strictly refinance auto loans. Do a Google search for Auto Refinancing Companies. Auto refinancing also extends the length of your loan, reducing the monthly amount. Most refinancing companies will only refinance loans of more than $7500.
Step 4

Trade your car in for a less expensive, good quality used car. If you can’t afford the car you have this is a better option than repossession. You will lose money on the trade in, but you will gain affordable payments and retain your credit rating.