How can I pay off my car earlier in a way that is affordable?

Question

After filing bankruptcy because of medical bills, I purchased a new car in July 2006. My payment is 325.85. My balance is $11,883.40 and the payoff is June 2012. What amount extra should I be paying to pay this debt off in 2008 and in 2009?

Answer 1

It's really just a matter of what you can afford each month in addition to your payment. Adding another $50 to $100 per month will help immensely, and any other money you come across in the meantime (tax refunds, etc.) can go towards your car payment, as well.

Good luck!

Answer 2

Hello,

I'm not sure about your money situation, but you better look at paying at least $500- $600 a month just to be able to pay it off in 2 years.

If your financial situation is in bad shape, then here is a suggestion that should help you along your journey....

Lets say you have other bills (medical) to pay off
per month you are paying lets say

$25 for one
$25 for another one
$25 for yet another one...and so on
(as well as other bills you are able to fully pay off)

Take the smallest dollar amount bill lets say $100.00....
Once that is paid off take the $25 and apply it either to your car payment or the next lowest bill and pay that, then you will eventually be applying all money spent for bills to your car. this is money that you were originally spending anyway so don't let it be play money until u reach your goals!!!

Answer 3

You need to be paying about $600 a month to finish in 2009.

Answer 4

Go to bankrate.com and use a loan calculator. If you add an additional $30-$50 month you should decrease the length of the loan significantly. One word of caution, you need to check your contract to make sure you can do this. Many loans will not allow you to repay your loan early.