Renegotiating Car Loans

A recent survey by a prominent national magazine found that almost 30% of new car shoppers were upside down in their current car loans. This means that people owe more on their loan than the value of their car.

One of the best ways to get out from under an upside down loan is to keep the car as long as possible. The longer a car is held on to, the closer the value of the car will come to the amount that is owed. If a car is kept until the loan is paid off, the car owner will know for sure that there is more value in the car than in the loan.

Refinancing a car loan can also eliminate the problem. Before attempting to refinance a car, it is important to check to make sure that the existing loan can be paid off early. Some banks create penalties for paying off loans early. The other option is to ask if the lender will renegotiate the loan.

If it is possible to pay the loan off early, the car owner will need to know what interest is being charged on the current loan. This allows the car owner to shop around for a cheaper rate or a longer loan. It is important to take a copy of one’s credit report to potential lenders when shopping for a new loan. This shows them, without requiring any effort on their part, that the person requesting a loan is an upstanding citizen.

Contact a Boston Bankruptcy Lawyer

If you are upside down on your car payments and are considering bankruptcy to get out of all of your debts, contact the Boston bankruptcy attorney of Joshua Spirn & Associates at 1-800-975-5346 to discuss your situation and to determine if bankruptcy is right for you.