How Do You Lower Car Payment Without Refinancing?
Car loans can be a major monthly expense for millions of Americans. New cars are appealing, and the general trend is to pay less up front and more on the back end–with big monthly payments. In some cases, cars cannot be refinanced–due to high mileage, age, condition or a combination of the three. In these cases, lowering your payment is considerably harder. There is one way to reduce your monthly payment without refinancing: a private debt restructure. Establish a solid reason for a restructure. Usually lenders only grant these types of programs, often called “hardship” loans, if you are in serious danger of defaulting on the loan. Such reasons include: medical emergency, loss of employment and bankruptcy. Calculate your own debt to income (DIR) ratio. A high DIR will cause you to struggle to make payments. Divide all of your monthly expenses by your gross monthly income. For example, if you have $1,000 in expenses each month (including a car payment), and $2,000 in gross income, you
