Step 1: STOP SPENDING MONEY!
If you are in such dire financial straits, you are leaking money and should stop spending money that you obviously do not have. When you begin spending money you do not have, creditors become reluctant to lend you money.
Second step: FOLLOW THE MONEY
Observe how you are spending your money. Assess your income. Log it. Consider where your money is being spent. If you stopped spending, you should have a substantial amount of cash in the bank. Develop a budget based on your essential expenditures. Attempt to establish a daily, weekly, monthly, and annual budget. After determining this, proceed to determine if your monthly income is equal to or greater than your monthly expenses. If this is not the case, you must either reduce your expenses or increase your income. Both would be preferable.
Step 3: BUILD A SMALL NESTEGG AND PAY OFF DEBT
Once you have extra money each month, you should save a little and pay off some debt. As you continue to do so, you will soon have emergency funds and a track record of paying off debt. It is also in your best interest to contact your creditors and see if they are willing to negotiate a monthly payment reduction so that it does not negatively affect your credit!
Step 4: BUILD A DOWNPAYMENT
Start saving for a down payment once you have accumulated a 3-to-6-month emergency fund. At this point, your goal should be between $2,000 and $3,000. Once you reach this amount, you should be eligible for most vehicle types.
Step 5: BE REALISTIC FOR YOUR FIRST VEHICLE
Remember that you must locate someone willing to give you a loan... period. You may not obtain your ideal vehicle immediately. You will need to gain strength. Once you have established a positive auto loan history, banks will be more willing to assist you with vehicle upgrades. When committing to payments, you must ensure that they are less than the amount you have set aside for the down payment. Otherwise, you will be unable to pay all of your creditors and will be right back where you started. You will pay a high interest rate, but keep in mind that this is only temporary; as you pay off your loan and other debts, you will eventually qualify for lower rates, although it will take some time.
This is a fairly straightforward plan. The majority of people cannot seem to comprehend it. The majority of those who follow this plan end up ""needing"" to go on a trip or ""needing"" to purchase the cool gadget that was there. This is a process, but when you are as bad as some of the people who have entered the car dealership, it takes a long time to get them back to the point where someone will take a chance on you. If this describes you, be practical and follow these steps. It will only provide long-term benefits."""