Car payments are one of the largest monthly obligations for most people, but they don’t happen in a vacuum. The average American is carrying debt across multiple categories at once. But their car loan may be the one lever they can pull to create more breathing room and get ahead of their debt. According to Caribou’s survey of 2,000 car loan borrowers, if they could save $150 a month on their car payment, 60% of respondents would use the savings to pay down other debt.
So how far can an extra $150 a month actually go? Saving on your car payment can create a positive ripple effect, freeing up money in your budget that can be sent toward the debt that’s costing you the most. This is becoming increasingly important…