Car payments can get overwhelming to the point of making you consider turning the car into the bank. Although the idea may be tempting, this will result in a blemish in your credit report, and you will also lose all the money you paid for the car up until that point. Instead of giving up the car, consider working toward lowering your monthly payments.
Make Yourself Look Good
The first step to lowering your car payments is to be a responsible creditor. If you always pay your bills on time and your credit score is good, chances are you can simply ask the company to lower your payments. It may not work, but it doesn't hurt to ask. If you do it, wait at least a year since you begin your payments, so they have a way to check your past behavior and see that you're responsible.
If you come into a lump sum of money at some point, consider making a larger payment at once and then asking the company to recalculate your payments based on the fact that you made that payment. You can also choose to pay a little bit extra each time for as long as you can. That will also affect the overall total you owe and you'll have more chances for a price reduction later on. If you can't get them to agree to lower payments, see if they would agree to drop the percentage you're being charged in interest.
Consider a Car Refinance Loan
A car refinance loan is essentially what the name implies, a loan meant to help you pay off your car or lower your overall payments. Lending companies should help you figure out whether you qualify for a loan without charging you a fee, so shop around if you're being asked to pay something. If you have bad credit and don't qualify for a full loan, a refinancing company can help you get a reduction in interest rate or to extend the length of your original loan, so in turn your monthly payments will drop.
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