What’s my best strategy

[Tomgon1981]

Hi guys any help would be appreciated. I was just discharged of ch7 Jan 18th been struggling along with a beat up old truck that finally gave out Monday long story short went to local dodge dealership got a new Jeep Cherokee Latitude for $20,700 after all rebates. Now for the bad I had nothing to put down all I had was a worthless trade in worth nothing but salvage price. So I got approved basically on income and job history because my credit score was 578 after ch7 so my terms are 17.9% and payments of $508 a month for 72 months. I can pay a few hundred more a month but what is the best way to do that. Or is there any chance some C.U will help or anything or do I need to pay for a year or what

[Kree]

The best way to pay extra is to pay extra.  If you pay 608 a month you will reduce your loan term by 18 months and save 4000 in interest. (paying 700 will cut 28 months off and save 6k in interest)

A CU might help depending upon your scores, but you will definitely need to pay extra each month. At 17.9% it is easy to get underwater on your loan, and if you owe too much compared to the value of the vehicle no one will touch it.  Paying extra, especially upfront will help you keep ahead.

[Anonymous]

Above is correct, you might have to wait a few months and bring the balance down significantly before trying to refinance.

[Tomgon1981]

Thanks for the advice. I’m shooting for $808 a month

[Kree]

808 would cut you down from 72 months to 36 months and save you about 7500 in interest.