Do you end every month with barely enough cash to pay the bills, and sometimes have to tap into your savings to get by? If so, it's time to re-evaluate your spending habits. Start by making a list of the expenses you know you'll have every month, like rent or the mortgage, your car payment, gas, electricity and phone. Then see what you have left. You may be surprised to learn that figure is not as high as you'd like.
You can't do much about the utilities or what you pay for your housing, but if you're spending too much on your car payment every month, that is definitely a place you can cut back. "No you don't have to trade your car in for something less expensive. Just look into refinancing," says Rob Gaudio, president of Harbor Credit, a San-Diego-based company that helps match people up with lenders across the country who want to do business with them. "The going rate for a car loan at most banks is hovering around eight percent. If you're paying any more than that, you're paying too much."
Wondering how much you can save by refinancing? Say you took out a 36 month loan on a $20,000 car a year ago, and made a $1,000 down payment. With a loan at 12 percent, you'd be paying $591.11 per month. Refinance what's left on your loan at the current rate of 8 percent for another 36 months, and your payments would drop $146.55 to a more manageable $444.56 a month.
Want to find out if you can qualify for a better rate on your car loan? Log on to www.harborcredit.com, fill out the fast and easy form, and a qualified lender in your area will contact you.
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