Do you owe more on your car than it’s worth? That’s bad. And that’s known as being upside down. But there are a few things you can do to fix it.
If you can’t pay it off within 18 months, sell it yourself. List it at your loan amount. If you don’t get any bites, then knock off a couple hundred. But don’t go any lower than the Kelley Blue Book value. Keep making payments as you sell it.
You may need to get a small loan to make up the difference between the loan amount and the blue book value. In this case, you should borrow enough from your credit union to pay your vehicle off and get an extra one or two thousand dollars. That extra money goes toward the purchase of a used, yet reliable, vehicle until you clean up some of your debt. Nothing fancy! Since you’re reducing the amount of debt by a drastic amount in just a short period of time, this is one of the only times we would recommend borrowing money to get out of debt.