How do you get out of being underwater on a car loan?

I'm tired of being underwater on my car loan. Is there a way to expedite the process so I reach the break-even point?

Answer
If you’re underwater or upside down on a car loan, you may feel helpless. By budgeting and paying a bit more toward your car loan each month, you can make sure that you get out from under your loan.
To pay down your balance and get more equity, use the following ideas:
  • Make a lump-sum payment toward the principal a few times a year
  • Round your monthly payment up to the nearest $50 or $100
  • Make principal-only payments regularly
  • Double up on your payments each month
However, adding this money to your car loan may prove difficult if you don’t have any disposable income. So to save money, you may want to look into lowering your car insurance policy. Sign up with Jerry to search quotes fromup to 50 different insurers to get the best rate possible. The average Jerry user saves $879 per year on car insurance!
Eric Schad
Answered on Nov 02, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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