 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Trade In or Sell Your Vehicle\n-----------------------------\nIf you're struggling to make your car payment, ask yourself if this is a one-time occurrence—the result of an unexpected medical bill, for example—or if this is something that could happen again.\nIf it's the latter, your safest bet might be to get rid of the vehicle. You could either trade it in for something more affordable, or sell it and buy a used vehicle so you can avoid having a car payment altogether. (Older cars often qualify for cheaper insurance too.)\nBefore going this route, however, you'll need to ask yourself two questions: How much is your car worth? And how much do you still owe on it?\nIf your car is worth more than you owe, you have \"equity\"—and could sell it to get yourself out of debt. Since private buyers generally pay the most, you could give yourself time to find one by asking your lender for a deferral, as outlined above.\nOr, if you're in a rush and looking for an easy way out, consider working with a dealership or a site like Carvana or Carmax. When you don't have the title in hand, this is often the most painless route.\nWhen you have equity, selling your car is one of the best solutions because 1) you could walk away with a few thousand dollars that allows you to purchase another, more affordable vehicle, and 2) you'll pay off the loan on time, meaning you won't incur any damage to your credit scores.\nUnfortunately, if you're \"upside down\" on your loan, meaning you owe more than the car is worth, this option won't work as well. One potential strategy: selling the car for the highest price you can get, then taking out a personal loan to pay off the remaining principal. While you'll still need to pay back the personal loan, the payments will likely be more manageable than what they were with your auto loan. END