How Can I Pay Off My Car? A Complete Guide
The average auto loan rate for someone with excellent credit is right around 6%. Those with good credit, meanwhile, can expect to get an interest rate that is somewhere in the neighborhood of 9%. And if a person has fair or bad credit, they could be looking at an interest rate that falls between 15 and 17%.
These kinds of interest rates will have you saying, “I want to pay off my car now!” You might be able to save yourself a significant amount of money when you pay off a car in advance.
So, how can you go about paying off your car faster than you would be able to otherwise? We have some suggestions that might help to put you in a position to pay off your car ASAP.
Here are some financial solutions to your car payment problem.
Begin by Paying Down Some of the Other Debt Hanging Over Your Head
Have you racked up a bunch of different forms of debt over the last few years? If you have, it’s going to be difficult to pay off a car when it’s holding you back.
It’s why you should make it a point to try to get rid of as much debt as you can. You can use something like the debt snowball method to eliminate a whole lot of debt from your life.
And once you’re able to put that debt in the past, you can begin to throw more money at your car. It’s the best approach to take when you find yourself saying, “I want to pay off my car.”
Consider Refinancing Your Auto Loan to Get a Better Interest Rate
If you didn’t take the time to figure out the best way to finance a car when you first bought one, your interest rate might be way higher than it should be. There are certain types of auto loans that come with higher interest rates attached to them than others.
If you got roped into taking out one of these loans, you should think about refinancing your loan. You could get access to a much lower interest rate. It’ll make your monthly car payments more manageable and allow you to pay your car off quicker.
Pay More Than What You Owe for Your Car Every Single Month
At the end of the day, the key to paying a car off quickly is finding some way to pay more than what you owe for it every month. Even if you only pay an extra $25 each month, it’ll add up over time and bring your loan balance down dramatically.
It’ll help you get one step closer to paying your car off and receiving your car title loan in the mail. And that car title could really come in handy as you aim to build a better financial future for yourself. If you want to see how a car title could benefit you in a big way, take a look!
Stop Saying, “I Wish I Could Pay Off My Car!”, and Get Out There and Do It
If you currently owe thousands of dollars on your car, it might feel like it’s going to be impossible to pay it off anytime soon. But the fact of the matter is that you don’t have to spend the next few years saying, “I really wish there was a way I could pay off my car.”
You can pay off your car if you just put your mind to it. Use everything that you’ve learned here to get the job done.
Get more tips on paying a car off by browsing through the other auto articles posted on our blog.