How to get out of high interest?

[loneSTAR]

I purchased a car a while back that I had been wanting for a while and in retarded excitement, I payed no attention to the paperwork and what not.... Now, the payments are fine but the interest is so high and that is all I am paying and have been paying!! Now, the car has depreciated a great deal and I am upside down by $7000!!!!!! ****** I believe it's called the Rule of 78's.
My question is; Is there any way to over come that without jumping futher into debt? Anyone savvy with finance or anything?

Please do not make this a, "Your dumb for not reading the contract" thread, I understand my mistake and do not need total strangers commenting on the obvious!

Thanks in advance!

[koukis14]

Contact the lean holder and ask them if they can re-finance your debt. Then just keep making the same payments and it will go away quicker.

[chrisdavis]

Depends on how old your loan is. You pay most of the interest up front on the loan, so at a certain point you start to pay more principle than interest. If you are at the point of the loan that most of your payment is going to principle and you refinance, you are going to go back to paying mostly interest again and it will not benefit you.

[osiriskidd]

yea refinance it.

[KPowerEP3]

Auto re-fi's are a HUGE ripoff, depending on how far along you are into the loan. If you've been paying on it more than a year or so, refinancing will land you right back in a similar spot within the next year, and then it will be depreciated even worse by the time the loan is paid off. See if you can sell if privately and make enough to pay the loan off? You could also do it the american way....trade it for something else, hopefully with better terms, and use your negative equity as a 'down payment' aka, bite the bullet and roll it over onto something else, of course that doesn't solve anything, just maybe takes you out of a car you're not so excited about and gets you in something maybe you like a little better.

Oh, and just FYI, the rule of 78s as it's called only applies if you pay the car off in full.

[itsjustdee]

I purchased a car a while back that I had been wanting for a while and in retarded excitement, I payed no attention to the paperwork and what not.... Now, the payments are fine but the interest is so high and that is all I am paying and have been paying!! Now, the car has depreciated a great deal and I am upside down by $7000!!!!!! ****** I believe it's called the Rule of 78's.
My question is; Is there any way to over come that without jumping futher into debt? Anyone savvy with finance or anything?

Please do not make this a, "Your dumb for not reading the contract" thread, I understand my mistake and do not need total strangers commenting on the obvious!

Thanks in advance!

I'M IN THE SAME SITUATION AS YOU ARE! I TOTALLY GOT RIPPED OFF ON MINE AND IT'S USED! DAMN ASSHOLES...*SIGH*

[SL65AMG]

maybe you shouldnt buy new cars unless you can pay it off in 2-3 yrs and NOT make minimum payments.....


if you dont wanna re-fi just start adding an extra 100 bux a month towards the principal payment which will lower your interest and get it paid off quicker.... you cant really get out of the interest anymore, you just need to work your ass off and not make the same mistake again

[JennB]

How many years have you been paying on the loan? Is your credit better now?

For now, pay extra on the loan. Anything extra will go straight to principle.

Do not get rid of the car now. You will carry that negative equity for countless years and pay more and more interest on it every time you roll it onto another car. Pay extra and get it paid off.

[loneSTAR]

my credit score is in the 700's...i have no problem with that kinda stuff, pay all my bills! ha

and I do pay more than the note....

I have a meeting with a financial advisor Monday, so if anyone is interested I will let them know how it goes...

but I do appreciate the advice some of you guys have given!

[Init2winit]

I purchased a car a while back that I had been wanting for a while and in retarded excitement, I payed no attention to the paperwork and what not.... Now, the payments are fine but the interest is so high and that is all I am paying and have been paying!! Now, the car has depreciated a great deal and I am upside down by $7000!!!!!! ****** I believe it's called the Rule of 78's.
My question is; Is there any way to over come that without jumping futher into debt? Anyone savvy with finance or anything?

Please do not make this a, "Your dumb for not reading the contract" thread, I understand my mistake and do not need total strangers commenting on the obvious!

Thanks in advance!Do you have GAP insurance on the vehicle?