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My sister has a car loan. It's got $15K to go and five years left to run. The payments are just under $300 a month. What's the smart thing to do? She needs to cut her monthly outgoings and has equity in her house to cover that amount. Is it better to borrow against the house for a much longer time and clear the car loan or try to get her payments cut by the car's finance company?
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What's the smart thing to do? She needs to cut her monthly outgoings and has equity in her house to cover that amount.
The smart thing to do is to sell the car and buy a used one for less than $1k and repay the car loan. Drive that clunker into the ground.Why risk the house? Is not the house more important than the car?
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What's the smart thing to do? She needs to cut her monthly outgoings and has equity in her house to cover that amount.
The smart thing to do is to sell the car and buy a used one for less than $1k and repay the car loan. Drive that clunker into the ground.Why risk the house? Is not the house more important than the car?
Yes! What a terrific answer. She should get rid of the car and buy something that will get her around where she needs to go. No more, no less. It's only a hunk of metal.
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I agree, a great answer from micharch. Cheapncheerful, she may be able to cut costs more by carpooling too. I was reading about carpooling sites today.
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If I were your sister I would contact the car company first, cheapncheerful. I don't think anyone should borrow against their home unless it's vital they have the money for survival. It should be a last resort because if they were to default on that, there goes the roof over their head. I have a real fear of homelessness.