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What to do when you can't afford your car payment anymore?

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What are the options? I don't want to surrender the car because we still need a vehicle. Could we trade that car in for a cheaper one on the lot? Or possibly refinance the vehicle to make payments cheaper but longer? We are still upside down on the vehicle. We have had the car for about a year now. We are having a baby and we don't think we can afford the payments anymore.

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asked Jul 29, 2017 in Cars and Transportation by Alan

2 Answers

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Why why why do people not follow the basic rules on how not to get into a mess
At least one third down.
New car pay it off in less than 3 years or the waranty whichever is shorter.
Used car pay it off in 18 months or less.
All you can do now is try to talk to your lender and extend the time.
Life changes happen.
You have risked ruining your lives and that if your baby for a tin box!
answered Jul 29, 2017 by Skoda John
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Trading for something else isn't going to help much if any and it will just bury you deeper in long term debt. Unless you put 20% down and have had it a year or longer. In that case, assuming your credit is still good, you might be able to refinance and get your payments down a little.

A part time job for your wife, after you get home would make a big difference.

Also, little things add up. Don't eat out. Don't buy coffee or soft drinks out. Cancel your cell phone. Cancel cable.

I haven't had cable or a regular cell phone in 10+ years. Netflix and a prepaid I pay $10 a year for suit me fine. (After the initial $100 for 1000 minutes and the cheapie phone)

Lenders can only do so much and they aren't going to permanently reduce your payment by 40-50%.

And anything they do would hurt your credit because you'd have to get behind before they do anything.

They want to keep you in the car but the most they can usually do is reset the loan after you struggle for 4-5 months straight and are a month behind, they mark it current but that comes with fees and a hit to your credit score.

You can find a way because the lenders wont let you take on too much debt usually.

Again, you may not find any big things but you can find multiple little things that add up.

$500 a month is $16.67 a day. You can find that to cut somewhere if you try. But, your wife working would be the easiest. 15 hours a week would bring in $450+.

I'm a professional tightwad. I no longer have to be because I'm a millionaire but I cant turn off the behaviors that got me here. I did upgrade to a $9000 car from a $1600 one last year but paid cash, of course.

Google "drive free, retire rich" so you don't stay on the car payment treadmill long term. That's not immediate help but longer term.

Also, DONT get involved in ANY MLM. They are all scams and instead of making money, you lose money.
Or buy massively overpriced products you don't need or could get similar stuff at Walmart for 50-70% less.
answered Jul 29, 2017 by JetDoc

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