 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Refinance Your Car Loan\n-----------------------\nDo you have strong credit scores? And do you owe less on the car than it's worth? Then you might want to look into refinancing your car loan.\nThis essentially involves replacing your current loan with a new one, usually from a different lender. Once you've signed the paperwork, your new lender will pay off your existing loan and take over the car's title until you've finished paying it off.\nBy refinancing, you may be able to reduce your interest rate or monthly payment. If you're struggling to pay your bills, you should prioritize the latter—and look for refinancing that allows you to extend your loan's term.\nIf you have 24 months left on your auto loan, for example, you could refinance with a 36-month loan. While that will likely increase the amount of interest you'll pay in the long run, it will also reduce your monthly payments today. And, though refinancing could cause a small dip in your credit scores, it's far superior to the damage that would be caused by missing a payment or defaulting on the loan.\nRefinancing may be difficult if you have low credit scores, or if you owe more on the car than it's worth. Some lenders may also charge a penalty for paying off your loan early. Still, refinancing might be worth a shot if the alternative is getting your car repossessed.\nJust make sure you apply for auto loan refinancing with a reputable company: The Federal Trade Commission reports that some fraudsters have been conducting scams wherein they promise to reduce your monthly bill if you pay an upfront fee. END