If you’re having trouble eliminating your car debt, here are four ways which may help.

Refinance

Car refinancing is an effective way to help lower car debt. By refinancing you can get a lower interest rate, something which a lot of people want. This will decrease your repayment amount which you can then pay, or you can continue to pay the higher amount and pay off the loan sooner. There are many refinancing companies out there, so do your research to find the best deal.

Budget

Sit down and work out in your budget if there are any extra available funds to pay off the debt. Don’t only pay the minimum repayments if you can afford to pay more. This way you will have the loan paid off sooner. Also, eliminate other bills such as credit cards if you don’t need them. They just add to the debt.

Sell

Although this is not the most ideal situation, if you cannot afford your car the quickest way out of debt is to sell it. Depending on how much you sell the car for and how much you owe on the loan, you may be able to afford a more economical car that you can pay cash for – and have some dollars left over to buy some new clothes!

Trade

An option similar to selling your car is trading it in at a dealership. You don’t have to go through the hassle of selling privately, and you can shop around at different dealerships to see which one will give you the best deal. Whilst finding the best deal you also have the opportunity to scout out a good trade-in car for yourself.