It can be kind of frustrating when you are in a bad credit loan. You are paying very high interest, and you may feel like you are throwing your money out the door. The reason why you have such a high interest rate is because you have poor credit, and you did not have a lot of options available to you in loan terms.
When you have poor credit, you are considered a huge risk to potential lenders. There is a big chance that you may not pay back your loan, so they are going to charge you an extremely high interest rate in case you default later in the loan. That way, they have already gotten their money from the loan early on.
1) If you really want to get out of the bad credit loan, the first thing that you should do is talk to your lender. Tell them your situation, and find out if they are willing to work with you. Ask if you can pay off the loan at a lower interest rate, or pay it ahead of schedule. If you are willing to work with them, they will probably be willing to work with you.
2) Find out if there are any penalties for getting out of the loan early. Some lenders depending on the type of loan will charge you a fee, but some will not. If you have paperwork on your loan it may be able to tell you. If not, it is best to give your lender a call on your situation.
3) See if you can borrow money from friends or family members to be able to pay the loan off and get out of it. If there is a pay off amount that could get you out of the loan, it would be a lot easier to pay it off at a smaller interest rate, then pay your friends and family members back.
You would have to have trustworthy friends and family to do so. You want to let them know the situation that this is a terrible loan, you want to get out of it before you have to pay so much interest. Let them know that your credit was bad in the past, and you are trying to move forward.
4) You can also talk to the lender to see if you can get your interest rate lowered. If you have been making high interest payments on time for awhile they may be willing to lower the rate, because now you are less of a risk. Say for instance you have a 5 year high interest rate car loan, and it is 2 years into it, and you have always been on time. You may be eligible for a lower rate.
It is possible to be able to get out of a bad credit loan, but you need to be willing to work with your lender, and explore all possible paths.
Sometimes it is best to pay the price for the whole loan because it will improve your credit score.