In today’s economy it is easy to find yourself owning too many vehicles. But how do you get rid of one of those vehicles if you still have a loan attached to it? This is a question that many people are facing right now as they struggle to make their car payments and purchase gasoline. If you are in the driving seat and looking for some effective ways to get rid of a car that you owe money on, consider some of these steps. You could be on your way to a smooth, tension-free ride.
Instructions
1. Establish a budget. Jot down the fixed expenses you incur every month and find ways to cut down on luxuries, where possible. A good start would be to review last month's expenses to determine where you may have overspent or what specific expense you could avoid. Build a strong desire to be debt-free and stick to the monthly budget plan you have established.
2. Adopt the piggy-bank method. This is a small yet time-tested, effective method to save money. Deposit whatever spare money you may have into a box, whenever you can. Even though you may not save a ton, the money you accumulate during the month will contribute to lessening the burden of your car loan in its own small yet useful way.
3. If you avoid unnecessary expenses and curtail your impulse-buying tendencies, the money you save could help you pay more than the minimum monthly payment on your car loan. This will reduce the time it will take to pay off your loan. This is one way to secure the car title in a shorter time.
4. Secure a lower interest rate. This is one smart way to refinance your current car loan. If the interest rate you are paying is high because of your poor credit or other reasons, consult your bank to determine if you could qualify for a lower interest rate. If you succeed, the money you save will help you make more payments toward the loan principal.
5. Pay more with contributions from other sources. If you receive some money you didn’t expect—such as an income tax return or a cash bonus from work—put this extra money toward your car loan. In this way, you can reduce the balance due and assume full ownership of your car more quickly.
6. If you still cannot afford the monthly car payment, the smartest and quickest way to rid yourself of it is to sell your car. If your car is in good working condition and has appreciable external appeal, try to raise its selling price so that you can purchase a more affordable vehicle with cash, repay your loan and offset the need to apply for another.
