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What to Do When You’re Upside-Down on a Car Loan

Friday, May 19, 2017
Nicole Arata | NerdWallet
Christopher Kukla

If you decide to trade in your car, be aware that this doesn’t eliminate negative equity — it rolls it into the monthly payment on your new loan. This means you could end up taking on even more debt. “What’s more likely is you’re going to end up just constantly rolling over negative equity,” says Chris Kukla, executive vice president of the Center for Responsible Lending.