So many reasons are there for which you might be willing to lower down the car purchase payments. You might be unemployed temporarily or you might have taken up some job at a lesser wage just because of the fact that it keeps so much potential. Regardless of the reason, several things can be done for easing out the burden caused by your car payments.
Go for some less-expensive option
You can choose a vehicle that might be less-expensive. Perhaps a fancy vehicle having all those whistles and bells might not be what you need and it can be fine if you opt for some model which is more economical. In case if you are able to have some car which is third less in comparison to the one that you have at present then the monthly payment can also become almost third less. Furthermore, if you are going to have a replacement with the one which can offer some better mileage then less gasoline will be consumed. You still have to be a bit cautious as you can realize less than you may owe on this newly traded car, hence you’ll have to be the one paying the difference.
Better Use HELOC
It is better for you to use the HELOC i.e. “Home Equity Line of Credit” rather than some automobile loan. The simplest reason is that the term offered by HELOC is comparatively longer than the one offered by an auto loan. Your monthly payments will become less too in this case. Because its home loan so interest will be tax-deductible and this will reduce your payments even further. You must also ensure that you always have to make payments on your loan as it’s secured by the home you have, not by the car. In case if you may fall behind then the lender will have all the rights to foreclose on the home.
Think on Increasing Down Payment
You can also think to increase the size of the down payment at the time of buying the car since the smaller is your loan, smaller are going to be your payments. For instance, if you’re going to make the $5,000 down payment rather than $1,000 then it will have a strong impact on the monthly payments you will be supposed to do and can make them almost $75 less.
Use some Credit Counseling Service
You can also consider making use of some credit counseling service in case if there is some sort of difficulty in paying all the bills, together with the monthly car payments. Most of these are quite skilled on negotiating with the creditors for reducing your loans’ amount, or interest which is being paid by you. They can also help you by earning you some extra time for paying back your loans. You can call your “Better Business Bureau” operating locally to get the list of the credit counseling companies that are offering services in or around your area. This is certainly going to help your cause.