Monthly car payments can be overwhelming, and for many who are unable to make these payments, automobile repossession is the result. But before you risk losing your car, explore the options you have for lowering your monthly car payments.
Refinance your car loan
One of the most common ways to lower your monthly car payments is to refinance your loan. Perhaps your credit wasn’t the greatest when you initially obtained your car loan, and now it’s improved. By refinancing, you may be able to get a better interest rate, which in turn will lower your monthly payments.
Switch to leasing
Instead of making monthly payments toward a car loan, you have the option to lease a car instead. Basically known as “renting” a car, these monthly payments tend to be lower than if you were to purchase the exact same car. If you won’t exceed the annual mileage limits, would prefer to get a more luxurious model at a more affordable rate, and see yourself upgrading your car every few years anyway, a lease may be the way to go.
Downgrade your car
The car you’re currently paying for may have been affordable initially, but perhaps the monthly payments are now too much for you to handle. Maybe you lost your job or something else has come up, but whatever the situation may be, you may benefit from downgrading your car. Struggling to pay for a car you can no longer afford doesn’t have to be your only option; you may end up destroying your credit or having the car repossessed if you end up missing too many payments.
Talk to your lender
If you are struggling with your monthly car payment, you can always try negotiating a better interest rate with your lender.
Pay off the loan
One of the best ways to get rid of the burden of an auto loan is to pay off the debt completely. But for many people, this isn’t feasible. However, if you’re receiving structured settlement payments or annuity payments, Peachtree Financial Solutions can help get you cash now. We can get you cash now by purchasing some or all of your future payments, and providing you with a lump sum payment. When you receive cash now, you may able to eliminate some or all of your debt, including car loan debt. Contact Peachtree Financial Solutions today for more information on how you can receive a lump sum of cash now!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.