EXPERTS ADVISE TAKING A DETOUR FROM LONG-TERM AUTO LOANS

EXPERTS ADVISE TAKING A DETOUR FROM LONG-TERM

Americans take almost two years longer to pay off car loans than they did 30 years ago -- a trend that has helped to bury many of us in debt.

Lured in by the prospect of lower monthly payments, many buyers have chosen to extend the length of their loans. This has cost them two ways: first, by encouraging the purchase of more expensive vehicles, and secondly, by increasing the amount of money (through interest) they'll pay long term.

The result is more debt, or in some cases, even owing more on the loan than the car is actually worth -- a condition known as being "upside down."

Instead of looking at lowering your monthly payments through extended loan length, experts say, pay as much as you can afford to up front. Also consider buying a more affordable vehicle. You'll be better off in the long run.


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