MistyAwaken
New Member
So, you're dealing with an upside-down car loan and trying to figure out the best move. Let me break it down for you. You bought a 2017 Toyota SUV in 2022 for $22k with a 16% interest rate because of your credit score at the time. Now, you've paid off your credit cards, and your score is expected to jump to 680-700. You owe $19k on a car worth about $11-12k, paying $600 a month with 48 months left.
Here's what I think: First, consider refinancing once your credit score improves. A better score could land you a lower interest rate, saving you money on interest. However, check the fees involved to make sur e it's worth it. Refinancing might reset your loan term, so see if that's a good move for you.
Another option is to increase your monthly payments to $850. This will help you pay down the principal faster, which is great since you're upside-down. Make sure you can sustain this without hurting your budget.
You could also do both: refinance for a lower rate and then keep paying extra. This way, you save on interest and pay off the loan faster. Just check if your lender allows extra payments without penalties.
Think about the overall cost of keeping the car. If it's reliable and you have no other options, it might be worth keeping and paying it off aggressively. If not, selling it at a loss could be an option, but that's a tough call.
In summary, improving your credit score, then refinancing, and paying extra could be your best bet. Check your budget to ensure you can handle the higher payments without stress.
Here's what I think: First, consider refinancing once your credit score improves. A better score could land you a lower interest rate, saving you money on interest. However, check the fees involved to make sur e it's worth it. Refinancing might reset your loan term, so see if that's a good move for you.
Another option is to increase your monthly payments to $850. This will help you pay down the principal faster, which is great since you're upside-down. Make sure you can sustain this without hurting your budget.
You could also do both: refinance for a lower rate and then keep paying extra. This way, you save on interest and pay off the loan faster. Just check if your lender allows extra payments without penalties.
Think about the overall cost of keeping the car. If it's reliable and you have no other options, it might be worth keeping and paying it off aggressively. If not, selling it at a loss could be an option, but that's a tough call.
In summary, improving your credit score, then refinancing, and paying extra could be your best bet. Check your budget to ensure you can handle the higher payments without stress.
