MovingForward
Palm Beach Gardens,#2Consumer Comment
Sun, May 27, 2012
Get out your contract and go to Bankrate dot com and run an amortization schedule based on the contract terms and interest rate you signed for when you borrowed the money. Then contact the lender and have them send you an amortization schedule so you can compare what the contract states and where you are now. Just based on your report it sounds like you have a very high interest rate loan and if you do pay late (or miss a payment) you have extra interest being applied to the outstanding debt. You set yourself up to be upside down when you put down such a small amount on the purchase ($500) that your sales tax and tags, title and registration were not covered in the purchase. Plus the high interest rate contributes to your being upside every month. If you look at the amortization schedule you will see the portion allocated to outstanding interest and the remainder goes to principal. It's just a guess on my part (because the facts weren't posted) but I bet only a very small portion of your payment goes to principal and the larger portion goes toward interest.
Probably the best way to get out of this loan is to refinance it with a credit union. They may not refinance you now for two reasons: 1) the recent skipped payment and 2) you are probably upside down on the vehicle.
If they won't refinance it, then can you get a part time job to get extra funds to save up to pay against the outstanding balance when you refi? You might not be able to since you are in the military now. Is there any way you can cut back on other expenses?
You are in a bad spot. If you save up enough you can sell the vehicle and pay off the amount you owe over the value at the time of sale. Really your choices are to 1) refinance the vehicle or 2) sell the vehicle or 3) let the vehicle get repossessed (not a good option at all).