Hello, my name is Jerome Silas. Welcome to my website about creating and following a healthy household budget. When I was in college, I tried to create a smart budget to save all the pennies I could after paying my bills. Unfortunately, I jumped in too fast and created a budget that was impossible to follow for the long term. Through the years, I have learned all about the methods that work best while creating and following a budget. I would like to share those methods with you all to help everyone create a healthy household budget. Thanks for your time.
One of the reasons why people are often hesitant to buy a new or used car is the reality of high car payments. However, car payments do not have to be unmanageable. In fact, with some careful planning and budgeting, you can finance your car with the knowledge you will pay it off far sooner than the set term of months.
1. Start with less than you can afford.
When car shopping, don't shop for your "maximum" budget for a car payment. Instead, look at cars that are a little older to get a reduced price. This way, when you finance the vehicle, you can do so planning to pay more than the minimum payment. In essence, you will pay your maximum budget for a much smaller car payment, shaving months or even years off your loan time.
2. Refinance your current loan.
If you already have a car loan, you might consider refinancing. Many dealerships have agreements with specific lenders, so getting dealership financing might work in the moment, but you may not get the best rate. In other cases, you might have had poor credit when your purchased, resulting in a high interest rate. If you refinance with improved credit scores, you'll get a better rate. With an improved rate, your monthly payment will decrease. If you pay what you were paying before instead of adjusting to the lower payment, you'll pay off your loan several months ahead of schedule/
Call your bank or credit union to see what offers you might take advantage of. Refinancing is one of the easiest ways to save money on your car loan and pay it off faster.
3. Put your tax return toward your payment.
Making one large extra payment each year will reduce the principle owed on the loan. Your interest payments will go down and your loan term will shorten by several months. Instead of using your tax returns for large purchases or similar spending, putting it toward a car loan will end up earning you back all the money you put into it in future savings alone.
4. Round up your payment.
If you can afford it, try rounding up your payment to the nearest fifty or the nearest hundred. For example, if you owe $268, you might round up to $300. It might not seem like much, but over time, you'll end up making an additional payment to the principle about every 8 months.
5. Never skip a payment.
Some loans will allow you a grace "skip" period every 12 months or so. Don't be tempted to take advantage of this "skip" period. The lost payment will only add to the months you need to pay later because of compounding insurance on the unpaid amount of principle. Instead of skipping a payment if you're in dire financial straits, look for other means of paying of the balance, even if you have to temporarily rely on a zero-interest credit card. As long as you pay off the card in enough time, you will avoid any interest charges and still stay on track with paying off your car.
6. Make half a payment every two weeks.
It may seem like the same amount, but you'll gradually reduce your interest payment if you can arrange this pay off schedule with your lender. For more information about financing auto loan, contact a lender or dealership near you. You can find the right car for the right budget.Share
20 June 2017