Can a Debt Consolidation help Me with a Car Loan I can’t afford?
Being stuck with a car loan that you can’t afford is a problem that no one wants to deal with. If you’re like most Americans, you have to have a car to get to work everyday, but if you can no longer afford to make the payments because of a decrease in your income or other bills, you have a serious problem.Unfortunately, most of the advice that is given to people in this situation tends not to work. Selling your car can be a terrible idea if you need transportation to get to work. Buying a cheaper car only works if you owe less on your current vehicle than what you can sell it for. Otherwise, you’re just paying off the old car and the new one at the same time. Buying a car that is really cheap can cost you thousands of dollars in maintenance down the road, not to mention probably strand you somewhere.Because of this, the better solution for many people is to use a debt consolidation loan to bring down the cost of their debt. If other bills are making it difficult for you to pay your car loan, then these loans can combine all of your bills into one monthly debt payment. This loan will have a lower interest rate and the payments will be stretched out over a longer time, giving you a monthly debt payment that can be half of what you’re paying now.If you just can’t afford your car loan because you don’t make enough to cover the payments, debt consolidation can work for you too. Your car loan can be refinanced with a debt consolidation loan. If you want, your other bills, such as credit card debt and student loans, can be combined in this loan too. Debt consolidation loans can offer you a lower interest rate and give you more time to pay off your debt. The result is that you can get a monthly debt payment that is half the cost of what you were paying for your old car loan. Debt consolidation can allow you to keep your car and free up enough money to keep up with maintenance and gas.