Upside down vehicle loan

What options do I have to pay the upside part (about $25,000) of a vehicle we want to sell? We will be living on one vehicle for about a year, to pay off debt. Cash advances on CC, personal loan,....?

3 Answers

Refinancing isn't an option for everyone. As the vehicle is worth less than the loan balance (upside down), the new lender usually won't take the risk and at the same time lower your interest rate.

The best decision you can make is to hang with the old car, as you are doing now, until you pay down the debt enough to have equity. To get out of this situation faster, you can make extra payments toward the loan's principal.

It's Tiara

Cash advance is a big no. Auto loan refinancing is a good option as long as the interest rate is low. Don't prolong the loan term since you'll eventually pay more on interest in the long run.

The other option is to settle the loan.

You can refinance the car with a short-term loan.

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