I’m sorry to hear you’ve been having some trouble making your car loan
payments. Your dad is right—8% is not a good interest rate. The average rate is around 4%. The interest rate you qualify for depends on your credit score, income, and debt-to-income ratio. An interest rate of 8% is reasonable if your credit score is 660 or lower. However, no two lenders are the same, so you should shop around and compare offers from multiple lenders to ensure you get the best rate and terms possible.
If you feel you should be eligible for a lower interest rate or would like to adjust your monthly payments, you should consider refinancing the loan and checking out offers from:
Finally, to help make payments more manageable, you can look into saving on other expenses like your car insurance
. Jerry
makes it quick and easy. Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies for free. If you’re hesitant to switch plans or insurance providers because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and even helps cancel your old policy! The average Jerry user saves $879 a year on car insurance.
MORE: What to do after buying a new car