Everyone has a budget that they need to stick to to live a certain lifestyle. However, we all need to make that budget go as far as possible to be capable of any kind of living! Running a household budget isn’t easy, and it takes a lot of planning and a level of attention and vigilance to make it work for your family. You have to consider big expenses like mortgage and rent while also thinking about the smaller ones like food and outings.
Did you know that the average American spends almost $10,000 per year on transportation? That’s a huge amount of money to move from place to place, and it makes sense that you would want to cut down this figure for the year. Lowering your car payments can make a big difference to your outgoings each month, and you can click here for more info about how to change your debts and find some freedom. A lot of vehicles are purchased with loans, so taking a look into whether you can reduce those payments is a must! The good news is that there are options you can take on to lower those monthly car payments, and we’ve got some of the best ways to do it.
- Refinance. Did you know that you can refinance to lower the interest rate on the loan that you are paying. Existing car loans often come with fixed interest rates and you may think that these cannot be changed, but you can speak to your loan provider to see whether you can refinance onto a lower interest rate.
- Extend. Another option to change the cost of your car payments is to refinance to lower your car payment, and extend your term by doing so. Car loan terms vary, and the less time you have paying on the loan, the less interest you pay. However, you can lower your monthly car repayment amount by lengthening your loan term. Yes, you may end up paying more interest, but you’ll pay less each month and that’s the goal when it comes to your budget.
- Second-Hand. Your car loses value the moment you drive it off the forecourt, but when you drive a used car over a brand new one, you will have a reliable car that lasts longer. Used cars are worth less than brand new ones, and you will find that you can save on your payments simply by buying used.
- Trade Down. You have an eight-seater vehicle but you only need four. You can trade down on your car model and have a smaller car, and while you are at it, you can swap out the luxury leather for fabric! Selling your car to buy an economical model is a sure way to reduce your payments, and you can get a firm offer for your car pretty quickly.
- Lease. Another option is to lease a car for a year or so, till you can save up for your own car. These days leases are very competitive, and it’ll save you on service and maintenance costs, and you might also get lucky in terms of getting huge discounts or rebates (in case of EVs)
Reducing your outgoings will give you more wiggle room for other important things in life, and eliminating your ebt could really work for you.
