“I needed a bit of help first”: how Emily refinanced a car loan that no longer fit her budget

A promotion, a new car and a repayment that became too much

Emily is a Brisbane childcare worker who also performs in an R&B and pop band. After a promotion, she financed a brand-new car through the dealership. The repayment was close to $400 a fortnight.

As other bills continued, that commitment stopped fitting her wage. Emily says the total leaving her account was greater than what she earned, and the pressure affected both her mental health and her work in childcare.

“I needed a bit of help first,” she says.

Refinancing with a clear trade-off

After finding the bank process difficult, Emily compared options through WeMoney and refinanced with OurMoneyMarket. The lender paid Hyundai Finance directly. Her new scheduled payment was about $179 a fortnight, and she also borrowed roughly $2,000 for an immediate expense.

The lower fortnightly amount came with a longer term of about seven years. That distinction matters: reducing the regular repayment does not necessarily reduce the total cost of a loan.

For Emily, the priority at that moment was creating a payment she could manage alongside everyday expenses.

Room to return to herself

With a smaller scheduled repayment, Emily says she was able to focus better at work and return to the music she enjoys.

“I’m just living life now,” she says.

Her experience is personal and includes a real trade-off between immediate cash flow and the length of the loan. Anyone considering refinancing should compare the rate, fees, term and total amount repayable, not only the new repayment amount.

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Disclaimer: Emily’s experience is her own and is not a guarantee of a similar result. The information in this article is general in nature and was prepared for information purposes only. It should not be considered financial advice and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for your circumstances and seek independent advice before making a financial decision.