Here are some practical, easy ways you can save money on your car loan with bad credit, and repay your debts faster.
1) Add extra payment on your monthly installment.
Most of the car loans have fixed monthly installments. So, every time you make an extra payment, it should go directly to the principal. You can also set up an automatic payment with the extra amount so you could avoid missing the due dates. Afterwards, you can work on increasing the additional payments.
2) Spend your cash windfall to repay your debts
Did you suddenly receive a chunk of money? Maybe you won the lottery, or received a tax refund or inheritance and you are tempted to spend on your must-haves. Hold that thought-debt must come off first. Use your cash windfall for paying off car loans faster.
3) Work on your budget
If you want to have more money to pay off your loans as quickly as you can, but increasing your income is not possible at the moment, decreasing your spending is an option. While it is a bit hard to trim your budget drastically, skipping small stuffs that used to cost you a few hundred bucks a day is worth it.
For example, if you are paying a thousand dollars a year for your gym membership, why not try cheaper exercise programs with friends until you have paid off your car loan? You may have to skip clubbing or eating out, but it’s only a short-term. Use your creativity to get cheaper alternatives to things that you used to buy.
If you love throwing big parties, why not try cost-effective celebrations that focus more on experiences instead of glamour? Even if you can only handle cost-cutting for a few months, the amount of money you can save can still help your car loan repayment.
Maybe you can keep some cost-cutting strategies you can use for life, especially the healthy and friendly alternatives.
4) Debt consolidation
It is not easy to obtain car loan for bad credit with reasonable repayment terms. Lenders look into your credit history to check your ability to pay your monthly installments. One of the most common financing options for people with bad credit who want to finance a car is debt consolidation.
If you want a stress-free ride, reduced interest rates on your bills and debts and an easy-to-follow debt repayment plan, debt consolidation can help you. You can also enjoy the convenience of making one payment every month.
Debt consolidation helps you become debt free faster and you can save hundreds to thousands of dollars on penalty fees and debt charges plus accumulating interests from various debts.
Australian Lending Centre helps thousands of individuals deal with defaults, late payments and charged-off accounts that could ruin your credit rating. Their debt consolidation program helps you reduce your debt payments and save money in interests. They also have in-house loan specialists that will guide you on how you can improve your credit score.
Start with a clean slate while you get your dream ride. Getting a car loan for bad credit isn’t as hard as you think, with Australian Lending Center.
Contact ALC today!