Now that you know exactly how much your monthly car loan payment will be after factoring in the fee, interest, and trade- allowance, it’s time to budget for your payment. Do you feel prepared to make that payment every month? Your first step is to analyze your overall financial situation by taking a deeper look at how and where you spend your money on both a monthly and daily basis. Use ACCC’s Budget in Your Pocket worksheet to help you figure out where your money is going on a day-to-day basis. To get an overall sense of your expenses on a monthly basis, use ACCC’s Household Budgeting worksheet. Be sure to include your estimated car loan payment you just calculated.
If after analyzing your financial situation you do not see room in your budget for your car payment, consider starting to save by cutting back and check out these tips on how to cut back on expenses like housing and utilities, food, personal insurance and retirement, health care, and clothing and services. If you are still having trouble balancing your budget, consider contacting an accredited credit counseling agency for a free budget counseling session.