This North Carolina woman put over $50K toward her SUV payments and barely made a dent in the $84K loan — here's how to avoid a debt disaster

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

The sticker prices on automobiles are higher than ever, but the monthly payments for leases and financing — with all the interest and fees rolled in — are truly where the staggeringly high figures can be found.

Blaisey Arnold knows this firsthand. Three years into owning her Chevy Tahoe, the mom of three says in her viral TikTok video that she financed the vehicle at $84,000 and paid $1,400 every month for the past three years, which comes to around $50,000.

Yet the North Carolina mom says she still owes at least $74,000 on the car loan.

“Honestly, that blows my mind,” she says to the camera. Her audience clearly feels the same way: “You need to learn about interest rates,” one commenter said.

According to Experian, the average American pays $730 a month for their car payment. This ranks as the second largest expenses for many individuals, trailing just behind rent or mortgage.

Leaving aside the specifics of her situation — which seems to be particularly extreme — auto loans can be crippling to a household's budget, even if you’re not splurging on a top-of-the-line SUV.

Bring down your monthly car costs

Arnold has decided to get rid of her Tahoe, though she doesn’t say whether her husband plans to do the same with his truck.

“Do not pay so much for something that is so irrelevant,” she warned her followers.

Arnold decided to ditch the Tahoe and buy an Audi in cash so she won’t have any more car payments. The reason she can do this — despite being in major car debt — is because her TikTok career has taken off.

In one of her videos, Arnold shows that she made nearly $4,000 off of just two TikTik videos in March.

But just because Arnold is ditching the car payments, doesn’t mean she won’t have to worry about other auto related expenses like insurance. According to Market Watch, luxury vehicles tend to have the highest insurance premiums due to their pricier repair costs. So, while she may save on her car payment, opting for an Audi to replace her Tahoe could cost her.

It’s always a good idea to shop around for the most affordable rates. You can do that with BestMoney.

BestMoney will compare offerings and even check for discounts from top insurers in your area, allowing you to choose the most affordable options. After answering a few questions, BestMoney will compile a list of auto insurance rates so you can find the one that best suits your needs.

While you’re finding the best auto insurance rates, you should also shop around to make sure you're getting the best deal on other necessary monthly expenses, too, including home insurance. This can help free up more of your monthly budget for saving up an emergency fund for if your car breaks down or for any of your other financial goals.

OfficalHomeInsurance’s digital insurance marketplace compiles the best home insurance rates for your unique needs. In just two minutes, Office Home Insurance will round up a list of offers from leading insurers that could potentially save you up to $482 a year.

Interest rates are climbing

Arnold doesn’t disclose the interest or annual percentage rate (APR) that’s attached to her Tahoe loan.

APR is a measure of the total yearly cost of a loan, including the interest rate and all additional fees. It’s determined by a host of factors, such as the key interest rates set by the Federal Reserve, the retailers’ own borrowing terms and, importantly, your credit score (a higher credit score will yield a lower APR, and vice versa).

In another video, Arnold says that her husband pays 14% APR on his 2020 GMC AT4 Sierra 1500. She adds that his monthly payment —$1,600 — is greater than her own.

According to Experian, the average borrowing rate for a new vehicle is 6.73% in Q1 2024, up from 6.61% last year.

Arnold’s family’s car situation seems especially dire. But one thing is for certain, they have to begin paying down their debt.

If you find yourself in a similar situation, you might want to consider a consolidation loan through Credible.

Credible makes it easier to pay off your debt quickly with their online marketplace of vetted lenders that can provide you with personalized debt consolidation loans.

So whether you’re stuck in never ending car payments or have built up credit card debt, Credible makes it possible to pay off your debt more efficiently at a fixed rate so you doin’t have to juggle multiple bills at varying interest rates.

All you have to do is fill in some information about yourself and Credible will provide you with a list of loan options to choose from so you can start tackling your debt.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.