90% of my freakin payment is going toward interest...and I'm on a strick budget - my credit sucks at this point, too!
2007-01-09 07:17:16 · 10 answers · asked by Win 4 in Business & Finance ➔ Credit
I'm on a 6yr finance plan.
2007-01-09 07:17:51 · update #1
I'm not asking for personal comments. (You don't know me) I am asking for ideas of solutions.
2007-01-09 07:29:05 · update #2
Most of your payment is interest because you are at the beginning of your loan (sorry MomKnows and Digdown- it s the math, not the bank). The only way to get a lower payment is to refi. Even if you make additional payments now, it will just shorten your loan, not lower your payment. The best thing to do at this point is to work on the credit and improve your score so you will be in a position to refi before too long. You may also want to save some cash, because if you bought this car with no $ down (I just have this feeling...) then you may have a hard time refinancing on a 1 or 2 year old car.
Need to be more careful in the future - no more impulse buys...
2007-01-09 07:27:25 · answer #1 · answered by sdmike 5 · 1⤊ 0⤋
Find out what the billing cycle is for your loan. If is is 30 days, once the company recieves your initial payment anything extra that you pay in that 30 days goes directly to the principal, instead of the interest. So if you can try to make your payment every 20 days instead of the 30 you are only paying the principal, not the interest. Paying off the loan quicker and paying less interest.
2007-01-09 15:25:05 · answer #2 · answered by pink_10001 1 · 2⤊ 0⤋
When you finance anything, the majority of the interest is front loaded (meaning you pay this first). You don't start paying more on principle until you are past the halfway mark of your loan. If you want out from under the debt, sell the vehicle and pay off the loan.
2007-01-09 15:29:02 · answer #3 · answered by c.s. 4 · 0⤊ 0⤋
Well, that's what happens when you take out a 6 year loan. You have to pay 6 years worth of interest, and the finance company collects that first. You can't get out of it. Just learn a lesson; try saving a dollar a week, and then increase it to two, and so on. You'll find you can put aside some money if you try. And don't let your payments fall behind. Take a part-time job if you have to.
2007-01-09 15:20:20 · answer #4 · answered by MOM KNOWS EVERYTHING 7 · 1⤊ 2⤋
Pay off your loan and you won't have to pay any interest. (sorry for the obvious answer).
Stop eating out at restaurants and fast food joints. Cut back on all "unnecessary spending". Cancel you cable bill. Don't go to the bar 8 times per month.
These are all costs that truly add up if you don't pay attention. If you create a budget and respect it, you can eliminate all of you debt. But you're the only one that can do it!
2007-01-09 15:23:33 · answer #5 · answered by MR MONEY 3 · 2⤊ 0⤋
Start by paying your bills on time, all of them. As your credit score improves over time you can refinance at a lower interest rate. When your credit score is low you pay higher interest rates on everything. I refinanced my car at a lower rate and reduced the number of payments by one year, and my payment stayed the same. It can be done.
2007-01-09 15:22:46 · answer #6 · answered by smartypants909 7 · 2⤊ 0⤋
interest on a car loan is front loaded. Unfortunately you're stuck. Only way to get out of it is to pay it off or sell it for more than you owe on it which is highly unlikely since....you are paying mostly interest at the front and it's a six year loan.
2007-01-09 15:23:29 · answer #7 · answered by digdowndeepnseattle 6 · 1⤊ 0⤋
Sounds like you have to suffer for a year or so until your credit score improves then you can refinance and get a better interest rate.
2007-01-09 15:21:19 · answer #8 · answered by tchem75 5 · 1⤊ 1⤋
ha
2007-01-09 15:21:09 · answer #9 · answered by Anonymous · 0⤊ 2⤋
declare yourself bankrupt
2007-01-09 15:21:20 · answer #10 · answered by Anonymous · 0⤊ 5⤋