The Joy Of Car Payments
When I bought a new car recently I did not have the ability to pay for it in cash. That meant I had to wade back into the murky waters of having a car loan and car payment.
It had been years since I had a car payment and I’d been debt free for half a year, but I didn’t see many other choices. I accepted the fact that I would have a monthly car payment and chalked it up to being “normal” since everyone else I knew also was making monthly car payments (except personal finance bloggers I know!).
However, I’m already dreaming of crushing that car debt quickly.
I’ve never been one to enjoy having any kind of debt so I’m itching to make it disappear faster than 5 years. My auto loan was set for repayment over five years with a very manageable monthly payment, but I’d prefer not to be making a monthly payment that long. I’d rather pay it off faster and start saving for a new car so next time I don’t need a loan with savings and trade ins.
Using ReadyForZero to Pay Off Car Loans Faster
Enter ReadyForZero. I used the free tools at ReadyForZero previously toward the end of my huge debt repayment phase when I was eliminating my student loans. I loved the product and it kept me motivated to keep paying off debt.
I figured I would log back into my account and update my situation so that I could work toward getting rid of my new car debt. I set up my account with the new details and it gave me a plan for how to pay off my debt faster.
How To Pay Off Car Loans Faster
In fact, ReadyForZero recently shared a blog article about paying off car loans faster. Their tips for paying off a car loan faster include:
- Make One Extra Payment a Year by spreading out that one payment over 12 months.
- Use the “Gigs for Goals” Method by taking on extra work and projects just to pay for one thing.
- Round Up Your Payments by rounding up your payment of $276 to $300 each month.
- Refinance Your Auto Loan to save money with a lower interest rate.
- Pay Half the Payment Every Two Weeks to send more money straight to principal.
- Bring in Extra Money to send some of that extra money toward the loan.
I plan to use several of these options recommended by ReadyForZero. I’m already rounding up my payments by about $15 every month. I also plan to use the gigs for goals idea and make extra money each month to send that way.
Ultimately I’d like to cut at least a year or two off of the entire length of my repayment. While I’m not going to rush out at pay it all off at once because I have a low interest rate, I do hope to shorten the overall time that I’m in debt due to a auto loan.
Get Out of Debt Faster With ReadyForZero. It’s free to sign up and really helps keep you on track and motivated when paying off large amounts of debt!