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How do I pay off my car loan in a year?
I got a 60-month car loan about two years ago, but honestly, I’m tired of having a car payment every month. I think I will make enough money to pay the $15,000 balance of the car loan off within a year, but I’m not sure how to put my plan into action. How do I pay off my car loan in a year?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Paying off your
car loan
in a year is an admirable goal. And with the right planning and budgeting, you may be able to reach your objective!If you have enough money to pay off the loan right now, don’t immediately write the check. You still need an emergency fund and savings, so don’t blow the entire amount, even if it eliminates your car loan.
To pay in installments, start by figuring out how much you owe (in this case, $15,000). Then, put together a plan that helps you make $15,000 worth of payments over 12 months. Some ideas to use include:
- Rounding up your monthly payment
- Making quarterly lump-sum payments on top of your monthly payments
- Making principal-only payments in addition to your monthly payments
The key is to make as many payments as possible while still being able to live worry-free in terms of bills and savings goals.
If you don’t end up paying your car off in a year, don’t worry about it. You can continue to make extra payments or even refinance your car to pay less for the loan in the long run.
To save some more scratch to put toward your car loan, review your current car insurance policy and compare quotes. With the
Jerry
app, you can shop quotes in just minutes. As a licensed broker, Jerry helps you find a better rate, buy new coverage, and even helps to cancel your old policy for you.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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