🚗 Getting Out of an Upside-down Car Loan
Being upside down on a car loan—owing more than your car is worth—is tough, but you can fix it. Here’s how.
🚫 What to avoid
Trading in the car-
Just rolls your debt into a new loan. Now you owe even more.
Refinancing-
It might lower the payment, but it keeps you in debt longer.
Voluntary surrender-
You give up the car, but the loan doesn’t go away.
✅ What to do
Pay it off early-
Throw every extra dollar you can at the loan to shrink the balance fast.
Sell the car yourself-
You’ll usually get more than a trade-in. If there’s still a balance after the sale, cover it with savings or a small credit union loan. It's better to pay off a small loan fast than drag out a big one!
🎯 Stay focused
Avoid the traps. Finish the loan. Sell the car if needed. And commit—never finance a car again.
You’ve got this!