I have a car that was purchased new in 2012 that is in pretty good condition. I am paying $400 a month for the car but it is too small for my family and frankly I can’t afford the payment anymore. I owe $11,240 on the car but it is only worth $6,100-7,100. Would trading this car in for a used car ($10,000) be a smart move?
Even if you sell the car or trade it in, you will still be responsible for the difference between the trade and sale and what you owe. Add that to the cost of the new car and you are well over the amount you currently owe on your present car.
Consider getting on a budget, finding as much extra money each month as possible and start paying extra on your current car note until it is paid in full.
If there isn’t any extra money each month, even after cutting ALL un-necessary spending, then get a part time job and put all that money towards the debt. Although this may be difficult, it will be temporary until you get yourself out of this loan.
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