Struggling

[Anonymous]

In July, I will have had my new car for 2 years. A 2013 honda CRZ... I was 20 years old just browsing at cars at the dealership after getting a better job after college and the sales guy just got my hopes up and then told me it was a 17% interest rate due to my credit score. I had an issue with a credit card when I was 18 but that's taken care of now. But he didn't give up and eventually talked me into signing the papers.. now my car is almost equal to my rent. I have been paying this and had never missed a payment. Since my car loan, I have a secured credit card, and a credit card from walmart, which I have not missed any payments. I also have a kohls card and student loans which I have also not missed payments. I was in the 530's when starting and I'm up past 600 now, but I am still struggling with the negative equity I have. I have tried refinancing, but it's a no go. My loan is already through a CU. Does anyone have any tips on refinancing or how to get my balance down? The car is worth only about 12,000 now and I still owe 18,000.... i make enough to survive and live comfortably, but I literally have no savings account because the money I would be saving each month, is paying for my interest. I still have 4 years to go and would like to get out of this hole way before then.. thanks.

[Noctilum]

There's not much you can do outside of riding it out for another four years or doing things the old fashioned way.  That is either increasing your income or decreasing your expenses, then hitting the principal on that thing like a freight train.  You say you live comfortably.  How uncomfortable are you willing to live to do that? 

[Anonymous]

Really tough situation. Never trust the dealer to do right by you.  The negative equity is really a killer, if you can you should put some money every month or so towards principle to try and get this down. 

[Anonymous]

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@Anonymous wrote:

Really tough situation. Never trust the dealer to do right by you.  The negative equity is really a killer, if you can you should put some money every month or so towards principle to try and get this down. 

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If your only option ends up being riding it out for a while, I would look into whether or not your lender will let you pay half the payment twice a month. I'm paid bi-weekly, and I take half my payment (at least) and pay it each paycheck. This way, I end up making a few extra payments in the year (some months have 3 pay periods). Also, less interest has accumulated on my simple interest loan when I remit payment.

That way you can have same amount out of your pocket while paying down a little quicker. Also, it helps me budget. I have a big payment (408). Budgeting 204 a pay is easier for me than taking 408 out of a single check. Just another approach.

[Anonymous]

Yeah Swamp, I normally have to put back $260 bi weekly I guess my only option is riding it out unless I win the lottery, ha. What are my chances of being able to refinance that in the future with the negative equity? Any at all? My current lender said they can't refinance it because of hte negative equity. Will anywhere work with me on it?