Upside Down Car Loan - Need Help

diane.jsmith - Thu, 01/20/2011 - 18:15

I have a 9% interest on Nissan Quest currently valued between $6,000-8,000. The balance on my loan is $20,000 on a 60-mo loan. I pay $500/mo. Credit scores are 586, 607, 622. I've been paying since March 2006. I would like to get out of this loan asap b/c I'm spending a little under $25 of my net income just on the note. Here are my options as I see them: 1. Keep the car for the remainder of the loan. 2. Shop the car around for the best trade-in value and seriously downgrade to get my payments for managable. (I'm thinking whatever equity in the car may cancel out some of the loan if I downgrade. For example, $20,000 - $6000 = $14,000). Buy cash car for $2500. 3. Refinance (I don't think I qualify for anything lower than 9%). or Pay down debt wait a year and refinance. Any other ideas?
 
Jeannine replies:  (Comments closed due to spam)
Diane it might help if you can get some free credit or debt counselling, eg from a social or government service or a non-profit society. Because if you don't qualify for less than 9% on a car loan you must have credit issues to work on, and aside from dressing this, the counsellor may also help you sort out an answer to your car options question. This is a student loan site, after all.