What can I do if I financed a Toyota RAV4 for 14.99%, and I'm already upside-down?
"I rushed into a car loan for a Toyota RAV4. Now I pay 14.99% interest on a $14,000 loan.
I'm upside-down on the loan, and I won't break even for around 30 months.
What can I do to fix this issue?"
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Answered on Jun 17, 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.
“Because you’re upside-down on the loan, it’s unlikely that a lender will consider you for a refinance until you break even.
The best option is to start paying down your overall balance. Instead of simply paying the monthly note, put additional money toward the principal—even if it’s only $50 a month.
The more principal-only payments you make, the faster you can pay off your negative equity and reach a break-even point.”
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