SoFi

You may not think about a door’s looks and functionality until something goes awry, like a crack or dent appearing or paint flaking off. Then, you realize what an important element of your living space doors can be, providing interior details as well as privacy and soundproofing. If you need to replace a door, either because it’s dated or damaged, you’ll likely have to spend at least a couple hundred dollars for a basic model. Some options, like a custom wood French door with frosted glass, could cost thousands.

Read on to learn more about the process and price of updating your interior doors.

What Are the Different Types of Interior Doors?

Interior doors come in many styles and price points. Here’s a look at some of the most popular options, plus current estimated costs (including materials, labor, and equipment) pulled from Angi and HomeGuide.

•   Traditional Standard doors, such as a bedroom door, swing in or out to open and close. This type of door can be either hollow core, solid composite, or solid wood.

   Cost to replace: $50 to $600.

•   Pocket These space-saving doors slide into the wall when they’re open. Pocket doors hang from the top and slide along a track mounted in a space inside the wall and across the top of the door opening.

•   French The door with a certain je ne sais quoi, French doors can be either single or paired, and can have either a full (single) glass pane or a number of divided panes. French doors are often used as exterior doors to porches or patios, but they can also be a great way to let light diffuse inside a home.

   Cost to replace: $200 to $4,000

•   Sliding A cousin to the pocket door, sliding doors save space by sliding in tracks at the top and bottom of the door frame. Unlike a pocket door, however, they don’t disappear into the wall. Glass sliding doors are typically used as exterior doors to a patio or deck, but can be used indoors to separate rooms while maintaining visibility between them.

   Cost to replace: $400 to $4,500

•   Bifold Also called folding doors or concertina doors, bifolds are made of panels that fold next to each other when opened, sliding on tracks both on top of and below the door. Single bifold doors are sometimes used as doors to your home’s closets, and a pair of bifold doors might divide a large room.

   Cost to replace: $35 to $70

•   Barn A sliding barn door in the home takes rustic farmhouse trends to the next level. These doors slide on a track mounted on the wall above the door. Barn doors have a low profile, as they do not swing out.

   Cost to replace: $150 to $4,000

•   Saloon Head straight to the wild west with these doors. Sometimes called cafe doors, saloon doors hang on a pivot hinge, meaning they can easily swing in and out with a nudge. Because they swing in both directions, they’re commonly used as kitchen doors or in cafes where traffic goes both in and out.

   Cost to replace: $100 to $500

•   Murphy You may have encountered a Murphy door before without even knowing it. Often custom made, Murphy doors are typically bookcases that swing out, turning a door into storage space.

   Cost to replace: $700 to $2,500

Recommended: How Do Home Improvement Loans Work?

Signs You May Need New Interior Doors

Interior doors in a home can take quite a beating. They’re slammed and scuffed. Paint can flake and chip; doorknobs and hinges can give out. Depending on their quality and age, there’s a chance your doors may simply have seen better days.

If these signs sound familiar, it may be time to buy some new doors for your home:

1.    The door is stuck and has trouble staying open or closed. The more someone struggles to open and close a door that doesn’t budge, the more damage they’ll do. If a door’s always sticking or never manages to stay closed, it may be time to replace it.

2.    The door is warped or cracked. Age will affect the quality of any door, and if the frame or hinges are visibly cracked or peeling, it’s time to think about replacing them.

3.    The door’s style is dated. If your kitchen’s classic saloon-style doors feel decidedly old school — not in a good way — it might be time to consider replacing them. Even if they still work, dated styles can negatively impact a home’s value at the time of sale.

Depending on the style of door and the complexity of the installation, swapping out an interior door can cost anywhere between $150 to $2,600. A good portion of the cost is professional labor.

While hanging a door might sound simple, doing it wrong can lead to improper closure or a door that just won’t close at all, which leaves you back at the drawing board. It could be worth asking for estimates from a few professional contractors if you decide to replace several interior doors at once.

A door can make an impression — good or bad — when someone enters a room. That first impression might become very important when considering home value. This kind of home improvement project could pay off when you eventually sell your home.

Recommended: Tips for Maintaining the Value of Your Home

DIY Ways to Update Your Interior Doors

Replacing interior doors altogether can be expensive and is not always necessary. If your door is in good shape, an inexpensive DIY can update your interior doors to look more modern or trendy.

Here are some interior door upgrades you might consider before ditching a door altogether.

•   Swapping out door knobs and hardware Sometimes dated brass or an ornate finish might make a standard swing door feel out of place. For between $75 and $150, you can update a door’s knobs and hinges.

•   Trying a new hue A fresh coat of paint might transform a door’s entire vibe. Instead of a standard white, you might opt for a neutral shade, make a statement with a black door, or choose a rich, deep tone that complements other colors in your home. You can even switch things up by painting the frame and the door different colors. Although you have to remove the door from its frame, this project is DIYable and can typically be done within a day or two.

•   Updating hollow core doors Hollow core doors are the standard type of door installed in many homes when they’re built. It’s a swing door with a flat surface. These are basic doors that can be a blank slate for your personal taste. For example, you might use molding and beadboard panels to create a paneled look on standard doors. This can make a builder-grade, hollow-core door look custom-made. This DIY project is a small investment for a big payoff.

If you don’t have enough cash on hand to cover the cost of upgrading your doors (or any other part of your home), you might consider using a home improvement loan for financing. This is an unsecured loan that can be used for virtually any purpose, including a home renovation or upgrade.

Once approved, you get a lump sum of cash up front you then pay back (plus interest) in monthly installments over time. For this kind of personal loan, rates are typically fixed and lower than credit cards.

Recommended: What Are the Most Common Home Repair Costs?

The Takeaway

Doors inside your home don’t just provide privacy, they’re a decorative feature of the property that can enhance its style. If your interior doors are in poor shape, replacing and updating them could help increase the value of your home, making the upgrade well worth the upfront outlay of money. Prices for this home upgrade can start at just a couple of hundred dollars and go into the thousands, depending on the details. If you need help financing this home improvement, a personal loan could be a good move.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Is updating interior doors worth it?

Each homeowner’s situation is unique, but it can be worthwhile to update interior doors. It can enhance soundproofing, improve the look of your home, and add to your property value.

What interior door styles are timeless?

When it comes to timelessness, simplicity is often best. Shaker-style doors can work well, and many people like the appeal of classic French doors.

How much does it cost to update interior doors?

There’s a wide range of costs to update an interior door. The door itself could cost from a couple of hundred dollars to a couple of thousand dollars (most basic models will be between $200 and $600), and installation can add $200 to $1,800.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-056

Your home’s heating, ventilation, and air conditioning (HVAC) system plays an important role in regulating temperature and air quality and keeping your house comfortable. Maintaining or upgrading the ductwork involved can be a small or major expense, depending on the job’s specifics, with costs ranging from $200 to $12,000, typically, and an average price of $1,252.

This guide will give you the basics of how HVAC ductwork operates and key cost considerations.

What Is Ductwork?

In the broadest sense, ductwork can be defined as the channels used for transferring heated and/or cooled air through the rooms and zones of a home or building.

In many cases, HVAC systems need separate supply and return ducts to circulate, filter, and treat air continuously. Supply ducts bring air from the furnace, geothermal pump, or other type of system to blowers and vents to heat or cool an area. On the flipside, return ducts transport untreated air back to the HVAC system.

Some of the most common HVAC systems that need ductwork include:

•   Geothermal or ground source heating and cooling

•   Central air conditioning

•   Furnaces

•   Central gas heating

Between these different systems and a home’s unique characteristics, ductwork can be handled in a variety of ways.

Recommended: How to Winterize a House

Installing New Ductwork

Figuring out how to install ductwork varies in complexity and cost between new construction and finished and furnished homes.

Additional steps that may be necessary for a finished home, such as cutting holes in existing walls, ceilings, and floors, may likely drive up the price of labor and require more materials and time for installation. Depending on where the system is placed, ducts may be run through closets, attics, basements, or up stairwells.

Since different homes require different amounts of ductwork, it’s helpful to think of cost on a linear foot basis. New ductwork can cost about $40 to $65 per linear foot, with the variation coming down to costs for materials and labor.

On average, retrofitting an existing home without ducts can run $2,400 to $6,600.

If you’re building a new home, including plans for HVAC ductwork from the getgo could reduce the overall installation cost. For starters, it would bypass the need to retroactively cut holes throughout a home for ducts and vents.

Additionally, it may be easier to design systems that utilize fewer linear feet since ductwork can be installed before walls and floors are completed.

Replacing Ductwork

If your home is already fitted with ductwork, replacing a portion of it or the entire system might be necessary due to leaks, cracks, or reduced efficiency over time. Since ducts are usually kept out of sight behind walls and ceilings or in attics and basements, accessibility is a key factor in repairing a system.

The replacement process involves both removing the existing materials and installing new ductwork. Replacing ductwork can cost from $25 to $55 per linear foot depending on the location of the existing system and choice of materials for the new ductwork.

Replacing ductwork in a home between 2,000 and 2,500 square feet can run $2,800 to $5,600.

Exposed ductwork can be easier for you to reach and replace on your own, but a professional contractor may be necessary for more complicated repairs and getting to concealed HVAC systems.

Additionally, a skilled professional could likely complete the job in less time than a DIYer might, and time may be a more pressing factor than money in the middle of a cold snap or during a heatwave.

The U.S. Environmental Protection Agency’s EnergyStar program recommends getting quotes from contractors with North American Technical Excellence (NATE) or Building Performance Institute (BPI) certification to get the job done right on the first try.

Recommended: The Cost of Buying a Fixer-Upper

Ductwork Materials

There are several types of materials to consider when planning how to install ductwork in a home. Broadly speaking, ductwork can be categorized as flexible or rigid, with options for materials within each category. Each comes with tradeoffs in terms of price, lifespan, efficiency, and flexibility.

Flexible Ductwork

True to its name, flexible ductwork is characterized by its ability to bend, which can come in handy when installing inside tight and tricky spaces.

In most cases, aluminum or non-metallic materials like plastic, polyester, and PVC are used for flexible ductwork. Here’s how they compare.

Flexible Aluminum: Costs between $4 to $7 per linear foot (excluding labor).

Pros:

•   Ideal for installing in hard-to-reach places

•   Longer lifespan than non-metallic flexible ductwork

•   Generally cheaper than rigid ductwork

Cons:

•   Poor energy efficiency without added insulation and sealing

•   Needs to be reinforced to minimize kinks and bends to improve airflow and efficiency

Flexible Polyester: Costs between $1 to $4 per linear (excluding labor)

Pros:

•   Useful for compact spaces

•   Generally one of the cheapest options

•   Resistant to mold and rust

Cons:

•   Prone to tearing and less durable than flexible aluminum

•   Needs to be reinforced to minimize kinks and bends to preserve airflow and efficiency

Rigid Ductwork

Rigid ductwork can be made from several materials, such as fiberglass and galvanized steel or aluminum. These options can also vary in shape (e.g., cylindrical or rectangular) and size. Additionally, there are differences in cost and features for each type of rigid ductwork.

Sheet Metal Ductwork: Made from galvanized steel or aluminum, these materials usually cost anywhere from $7 to $13 per linear foot.

Pros:

•   Greater durability than other materials

•   Can produce less noise than flexible ductwork

•   Less susceptible to mold and mildew

Cons:

•   Difficult to install if there isn’t space for long, straight lines of ductwork

•   Adding insulation may be required for greater energy efficiency

•   More expensive than flexible ductwork

Fiberglass Duct Board: Consisting of metal ductwork lined with fiberglass, this option costs between $4 and $6 on average.

Pros:

•   Built-in insulation improves energy efficiency and temperature control

•   Easy to cut and seal

•   Well suited for installing between a building’s rafters or floor joists

Cons:

•   Over time, they can release fiberglass particles into the air and be susceptible to mold and mildew

•   Can be difficult to clean

•   Often the most expensive option per linear foot

Recommended: Guide to Unsecured Personal Loans

Sealing and Insulation

Depending on the structure of a home, the type of HVAC system, and other factors, sealing and insulating ductwork may be necessary for health and safety concerns. It might also improve the efficiency of a system, thus potentially lowering your energy use, and may help pay for itself through lower utility bills.

If combustion is involved in your HVAC system, which is generally the case for furnaces and central gas heating, harmful gases like carbon monoxide are generated in the process. Sealing ductwork can further safeguard that such gases are not circulated into the living space of home instead of being emitted outside.

While professional contractors are recommended for sophisticated ductwork insulation and sealing jobs, homeowners may choose to take a DIY approach to sealing near vents and other ductwork connection points with metal tape. These locations, especially vents, can be more accessible and are more common locations for leaks.

How Often Should Ductwork Be Replaced?

While we may immediately notice when the power goes out or the plumbing is backed up, it’s harder to tell if we’re getting the most out of a heating and cooling system.

Maintenance and cleaning can help extend the lifespan of ductwork and heating and cooling systems, but a time will come when replacement is a safer and more financially sound choice.

Erring on the side of caution, you may want to have a heat pump or air conditioner (including ductwork) replaced if it’s more than 10 years old. For a furnace, the estimated lifespan is around 15 years.

To keep your ductwork in tiptop shape, there are some maintenance tasks, like changing air filters monthly, that can be done on a DIY basis. More complex procedures, such as cleaning blowers, checking electrical connections, and lubricating mechanical parts, may be better handled by a professional contractor.

Having a maintenance checklist handy can be helpful for staying on top of your cleaning and maintenance schedule, as well as making sure a contractor checks all the boxes when inspecting your HVAC system.

Recommended: Guide to Buying, Selling, and Updating Your Home

How to Finance Ductwork

Whether you’ve saved in advance or are responding to a sudden home repair cost, there are options available for paying for HVAC ductwork.

Installing energy-efficient heating and air conditioning systems may qualify for a residential energy property tax credit. Additionally, some states and utilities offer incentives and rebates.

Although helpful, these incentives and tax credits still leave a portion of the cost to the homeowner. It can sometimes be difficult to save for potentially pricey repairs like these if a budget is already stretched thin.

One financing option you might consider is an unsecured home improvement loan. This is a personal loan designed to be used for home upgrades and repairs, and typically comes with a fixed interest rate, set term, and regular monthly payments. Unlike a home equity loan or line of credit, personal loans don’t require you to have equity in your home or use your home as collateral.

The Takeaway

Ductwork plays an important role in your home’s HVAC system and keeping your home healthy and comfortable. But, like all parts of a property, it can get old and/or damaged and need repair or replacement. Typically, a ductwork repair will cost $1,252, but the price tag can be considerably higher. If you need help financing ductwork, you might consider a home improvement loan, which is a kind of personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much should new ductwork cost?

How much new ductwork will cost will vary with the size of the project, where it’s located, and whether it’s a repair or a replacement. Average costs stand at $1,252, but the range of costs can run from a couple of hundred dollars to over $10,000.

Does homeowners’ insurance usually cover ductwork?

While insurance policies differ, most homeowners’ insurance does not cover ductwork repair or replacement.

Can I replace my own ductwork?

While you could DIY a ductwork repair, experts in HVAC caution that it’s a complex job requiring a solid understanding of how the system works and building code specifics. It may be wiser to call in a pro.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-059

Whether your living room is looking dated, cramped, cluttered, or is simply no longer working well for you and your family, there are makeover options for every taste and budget. Also keep in mind that living room remodels can happen in various stages — they don’t have to be all or nothing. Even simple, affordable updates like new lighting, paint, or flooring, can have a big impact on the look and feel of a living room.

Whether you have the budget for a total overhaul or you’re just looking for a quick and affordable update, here are some living room remodel ideas to consider.

Living Room Remodel Ideas: Top Elements To Change

Ready for a new living room look? These are the features to think about.

Layout

Effective use of space makes a room feel comfortable and inviting. If your living room seems underused, perhaps changing the layout will make family and friends want to hang out in it more often.

For someone moving into a new home and starting with a blank space, looking first at the layout of the room is a good starting point. Where do you enter the room? Where does your focus go first? Are the windows situated for convenient placement of furnishings?

If you’re currently living in the home, but the living room just isn’t functional, look at the layout in terms of what can be easily changed.

What in the room do you regularly use, e.g., couch or closets? Where do piles tend to accumulate? Do the windows cause a glare on the television? Is your furniture arranged to allow for good traffic flow and good conversation? The more effortlessly the room setup can support your daily movements, the better.

Recommended: Home Equity Loans vs Personal Loans for Home Improvement

Windows

Windows not only let light in, they affect our perception of how large, open, and welcoming a space is. Replacing them can be pricey, but might increase a home’s value and can generate energy savings: On average, 25% to 30% of a home’s energy use is due to heat gained or lost through the windows.

If the window itself is fine but the aesthetic is not, new window trim or window treatments can make a world of difference. Painting dark-stained trim in a shade of white can make a space feel lighter, brighter, and more modern.

Updating window treatments with ceiling to floor length curtains adds drama and interest, while Roman shades that fit inside the window casing keep things unobtrusive while still adding texture and privacy.

Recommended: How Much Does It Cost to Replace Windows?

Lighting

Lighting is functional, of course, but it can also be an aesthetic choice. Think about taking a picture indoors with or without a flash: Room lighting has that same sort of visual resonance, affecting how the other elements of the room appear and how you feel in the space.

In choosing lighting for your living room remodel, consider if you want the fixture to disappear, as with recessed lighting, or be a visual focal point. How bright or dim, warm or cool do you want your light levels? Where in the room will you need the most light? And adding dimmer switches to any lighting setup gives you loads of control.

Ceiling

Like the sky outside, what’s hanging above our heads indoors dramatically affects how we feel in a space. If you have a textured or popcorn ceiling, refinishing it to be smooth can instantly brighten and update your living room. It’s a messy DIY project, but one experienced painters or contractors can do while keeping the mess to a minimum.

If the ceiling would benefit from a new coat of paint, veering from the standard white might give the room a stylish quality. Light hues can create the illusion of a taller space, while something a little darker can evoke coziness.

Recommended: Beginner’s Guide to a Bedroom Remodel

Flooring

Along with layout and paint, flooring has perhaps the biggest impact on a room. It’s a large, dominant, visual element that affects how sound echoes in the room or carries beyond it, how much light reflects into the room, and how much dirt shows up.

When buying a new home, it’s a good idea to check what’s under the carpet. You might find lovely hardwood floors in pristine condition — or a mess of a subfloor. Knowing what you will have before signing the mortgage agreement will allow you to make a plan for any needed renovations. For a quick change, don’t underestimate a simple area rug.

Recommended: Four Ways to Upgrade Your Home

Molding

Molding hits the sweet spot of a decorative finish that feels structural. The trim around windows and doors, crown molding and baseboards, picture and knee rails — all inform the character of a space and add visual interest and structure. In particular, if things feel blank or sterile, adding decorative trim can make a space a little more impressive.

Paint

Fresh paint works wonders. Even if you don’t have time or budget for anything else, reimagine the wall color. Samples painted on the wall will show how the room’s light will affect the paint. Many paint brands now also offer virtual ways to “paint” your room.

Just as a room’s lighting can affect your mood, paint color has an effect on one’s psyche, too. For instance, the color blue has been shown to have a calming effect, while red has a stimulating effect and can create feelings of excitement or even stress in some people.

Furniture and Decoration

You can replace it, move it, or just pull it from another room. Alone or in conjunction with other major changes, furniture and decor can have a major effect on the finished space — and keeping layout top-of-mind when selecting furniture will help make sure it’s the right stuff for the space.

Using online room planners or going old school with graph paper to map out, to scale, what will go where is a good way to experiment without the heavy lifting.

When you’re ready to make changes (which can enhance your home’s value if you are planning on selling soon), it’s wise to develop a budget. If you don’t have funds saved to finance your remodel, you might consider a personal loan vs. using your credit cards. You may find a more favorable interest rate and save money over the long run with one of these home improvement loans.

Recommended: How to Apply for a Personal Loan

What Color Should You Paint Your House Quiz

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

When your living room is feeling outdated, looking worn, or isn’t working well for your household, it could be time for a remodel. Changing the paint color, lighting, floors, and furnishings can make it more comfortable and functional. It can also make your home show better if you are planning on selling. To finance your living room remodel, you might consider a home improvement loan, a form of personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How often should you change your living room?

The living room tends to be the hub of your household’s social life, and it can get a lot of wear and tear. Design pros suggest updating it every three to five years to keep it looking fresh and working well for your family.

How much does it cost to redo a living room?

Remodeling a living room can cost from $2,500 to $15,000, according to Angi, depending on the extent and specifics of your renovation. If you are just repainting one wall and adding some new throw pillows, it can be at the less expensive end of the range. If you are buying all new furniture, window treatments, and lighting, as well as refinishing the floors and adding wallpaper, it can cost significantly more.

What are some key areas of a living room in a remodel?

Key areas of a living room remodel can include furniture, lighting, floors, walls, and window treatments. Accessories are also part of the overall look and feel of a living room.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-054

If you fail to make your car payments or otherwise default on your loan, you risk having your car repossessed, or taken back by the lender.

The process of vehicle repossession can be costly. You may be responsible for the deficiency balance on the car, which is the amount you owe on the car, minus the amount the lender sells the car for, as well as additional fees.

Repossession can also have a negative impact on your credit, which can make it harder to qualify for another car loan, as well as credit cards or a mortgage, in the future.

Read on to learn more about car repossession, how to avoid it, and what your options are if it happens.

Why Do Cars Get Repossessed?

When you borrow money to buy a car, or you lease a car, you generally have to agree to specific terms outlined in the contract. You will likely have to agree, for instance, that you will make monthly payments on time and keep adequate insurance on the vehicle.

If you don’t meet those requirements, the lender (or leasing company) has the right to take the car. In some cases, a lender will alert you of your missed payments and attempt to collect payment prior to repossessing the vehicle.

Depending on the loan contract you signed, however, some lenders or leasing companies can take the car back after one missed payment, without any prior notice of late payment, or warning you that your car is going to be repossessed.

If having car insurance is a requirement of your auto contract, as it often is, your car can be repossessed if your auto insurance has lapsed and isn’t being paid.

💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.

What Rights Do I Have if My Car is Repossessed?

While the car does not technically belong to you (the lender typically holds the title until the loan is paid in full), you do have some basic rights if your car is repossessed. Here’s a look at what these rights include.

Your Personal Property

If you have any items of value in the car, such as a laptop or car seat, the bank or leasing company that owns the loan, or the car repossession agency, cannot keep or sell the property found inside the car.

In some states, a creditor must tell you what items were found in the car and how you can get them back.

If you’re having trouble retrieving personal items that are of significant value, you might want to file a complaint , or talk to an attorney about how to get your belongings back or if you can be compensated for them.

Selling Price

If your car is taken and sold, the lender doesn’t have to sell it for the highest possible price, but they are legally required to make an effort to get fair market value for the car and to sell it for a “commercially reasonable” price.

The reason is that the sales proceeds will go toward paying off your debt. It would be unfair to repossess a vehicle and then give it away for very little to somebody else

Also key: If the creditor holds onto the car and doesn’t resell it, you generally will not owe a deficiency balance on the car (which is the amount you owe minus what the car sells for).

Recommended: Tips for Overcoming Bad Financial Decisions

Getting a Car Out of Repo

Should you be interested in getting a repossessed car back, that might be an option. You may be entitled to buy back the vehicle by paying the full amount you owe on the car. This typically includes your past due payments and the remaining debt, along with any fees that accumulated in the repossession process.

Another option for getting your car back is to try to buy back the repossessed car by bidding on it at the repossession sale.

Or, you might instead decide to save up for a car and get a less expensive vehicle.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

How Much Does a Car Repossession Cost?

If the lender repossesses your car and then sells it at an auction, the sales proceeds go toward your loan balance. In many cases, the car sells for less than you owe, so your loan is still not paid off. The amount you owe is the deficiency balance.

In addition to the deficiency, you may also have to pay for costs related to repossession. Charges can include expenses for sending a repossession agent, storing the vehicle, and preparing the vehicle for sale.

If the deficiency balance goes unpaid, it can result in a lawsuit against you, along with wage garnishment (a type of automatic paycheck deduction) or a lien against your property.

If you are able to buy the car back before it goes to auction, you will likely be responsible for paying the full amount you owe on the car, which may include your past due payments and the remaining debt, along with any fees that accumulated in the repossession process.

How Car Repossession Affects Your Credit

On its own, a repossession is a red flag on your credit report and can have a serious impact on your scores. A repossession can also stay on your credit report for seven years, beginning with the date of your first late payment.

In addition to the repossession being listed in your credit report, failing to pay your auto loan on time may trigger other negative marks on your credit. For each month you are 30 days or more past due, the lender can report the account as delinquent. If the account was sent to a collection agency, a record of the collection account may also appear in your reports.

Recommended: Guide to Reading & Understanding Your Credit Report

How to Avoid Car Repossession

It can often be easier to prevent a vehicle repossession from happening than trying to fix it after the car has been taken away. Here are some ways you may be able to reduce the risk of repossession if you’re struggling with car payments.

Talking to Your Lender

If you fall behind on your auto loan or you think you soon may, it can be worthwhile to reach out to the lender to discuss what options you may have.

There is a chance your lender will allow you to defer your loan payments for a period of time or help you come up with another solution to allow you to keep your car. This shows good faith as you try to remedy your situation.

If you and the lender are able to come to an agreement about amending or skipping payments, it’s a good idea to get the new terms addressed in writing to avoid problems down the line.

Recommended: ​​How to Get Caught up on Late Payments

Refinancing Your Car Loan

If you’re struggling to pay your auto loan, refinancing might help get your payment to an affordable level so you can continue to pay on time. Refinancing entails paying off your current auto loan with a new car loan. If you are approved for a new loan, refinancing could help you avoid repossession by satisfying what you owe on your existing loan and starting fresh with a new lender.

Just keep in mind that auto loan refinancing can lead to higher costs due to lender fees and additional interest if you extend the loan term.

Considering Voluntary Repossession

If your lender won’t accept late payments and demands that you return the car, voluntarily repossessing (or surrendering) the car may be a better option than having it taken away.

Turning in your car can reduce the creditor’s expenses and, in turn, reduce how much you’re required to pay (though you’ll still likely be responsible for late payments, late fees, and possibly a deficiency balance). A voluntary repossession also gives you more control over when you give up your car than having the car suddenly taken away from you.

Your creditor may still enter the late payments and repossession on your credit report, where it can remain for seven years. However, a “voluntary surrender” can be less damaging to your credit than a “repossession.”

Protecting Your Credit After a Car Repossession

While a repossession can negatively impact your credit report, it won’t be forever. As time passes, and as you handle your other credit obligations responsibly, the impact on your credit score can lessen.

These moves can help minimize the damage and rebuild your credit over time:

•   Paying off any outstanding debt on your car loan

•   Making payments on other debts (such as student loans) on time

•   Maintaining low balances on credit cards and paying them off in full every month

•   Making timely payments for all of your bills (so none are ever sent to debt collection agencies)

Managing your money responsibly shows future lenders that you can make wise financial decisions and will be trustworthy when it comes to paying off loans and credit in the future.

The Takeaway

If you have missed payments on your vehicle or let your car insurance lapse, the lender can repossess your car and sell it at an auction. You will then likely have to pay the difference between what the car sells for and what you still owe, plus various additional fees.

Depending on your loan or lease contract, you may have time to make the missing payments and retrieve your car before it’s sold at auction.

Either way, a car repossession can be costly, and also have a negative and lasting impact on your credit.

One of the best ways to avoid car repossession is to stay on top of your car payments, making them in full and on time each month. Setting up a monthly budget can help you make this happen.
Another good safeguard is to wait until you’ve saved up for a substantial downpayment on a car before you buy, or use that money to go with a more affordable used car and pay for it in full.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How long does it take to repossess a car?

The process to repossess a car can vary, but lenders typically start car repossession when you’re in default, which is usually at least 60 days past due on a payment. Lenders may send multiple notices and offer a grace period, but if you fail to make payments or reach an agreement, they can send a repo agent. The exact timeline depends on the lender’s policies and state laws, so it’s crucial to communicate with your lender and understand your specific situation.

What happens when your car gets repossessed?

When your car is repossessed, it is typically towed away by the lender. You lose possession of the car and the right to drive it. Rules vary by state, but the lender is generally required to notify you of your options to get the car back and must hold the vehicle for a certain number of days before selling it. During this time, you may be able to reclaim the car by making arrangements to pay off the balance owed as well as any fees associated with the repossession process.

How many missed payments before repo?

While it’s not common, an auto lender can repossess (or “repo”) a vehicle after just one missed payment. Generally, though, auto lenders will wait until at least two or three payments before sending a repo agent. The number of missed payments allowed before repo varies by lender and will be outlined in the loan agreement.

To avoid repossession, it’s important to reach out to your lender as soon as you run into trouble repaying your car loan. The lender may be willing to offer options like payment deferment or interest-only payments to help you avoid defaulting on the loan.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
This article is not intended to be legal advice. Please consult an attorney for advice.

Creating a budget isn’t just about tracking each dollar that comes in and goes out. It’s also about deciding how to allocate your income across different spending categories. That means figuring out what percentage of your earnings should go towards essentials like housing and food, as well as goals like debt repayment or savings. This process helps you spot where you might be overspending and make smarter decisions with your money.

Knowing how to set the right budget percentages can be a powerful tool for taking control over your finances and making sure your spending aligns with your priorities. Maybe you’re spending more than you’d like on dining out or entertainment and want to shift some of that money toward paying off a student loan or building an emergency fund.

Understanding how to break down your income by category is key to building a balanced, sustainable budget. Here’s how to get started.

What Are Budget Percentages?

Even if you’ve already created a budget, you may have been thinking of it more in terms of specific dollar amounts than percentages of your income as a whole.

That’s where budget percentages come in: Rather than assigning a set dollar amount to spend in a given category, budget percentages require us to think instead about the proportional amount of our income that the dollar figure represents.

Think of it as a pie chart: No matter the amount of cash you spend on a given category, that money represents a certain slice of the pie. Making sure that slice is the right size is important to ensure that everyone at the table — which is to say, each of your line items — gets some of the pie.

Basics of Budgeting Percentages

There are no hard-and-set rules on what percentage of income to assign to each specific budget category. After all, even the categories themselves will depend on your personal needs and wants. (Maybe you’re a frequent flyer with a budget line item for international travel, for instance, or a music aficionado who has to stash some cash for your growing vinyl collection.)

That said, there are some basic rules of thumb that can be used as a starting place and then customized for individual needs.

Example Budget Percentages

If you ask five financial experts what percentage of your money to allot to a given category, you’ll probably get five at least slightly different answers.

But here are some basic example budget percentages that many experts can, more or less, agree on:

•   Housing (rent or mortgage, as well as property tax and maintenance expenses): 25%-30%

•   Insurance (such as health insurance, auto insurance, and life insurance): 10%-25%

•   Food (including groceries, food delivery, and dining out): 10%-15%

•   Transportation (including gas, car maintenance, and public transportation): 10%-15%

•   Utilities (such as electricity, internet, and water): 5%-10%

•   Medical (including doctor/dentist visits and prescriptions): 5%-10%

•   Savings (including retirement): 10%-20%

•   Entertainment (movie nights, concerts, dinners out, etc): 5%-10%

•   Personal care (e.g., clothes, gym memberships, and haircuts): 5%-10%

•   Giving (gifts to others and charitable donations): 1%-10%

•   Miscellaneous (any expense you can’t fit in other categories, such as childcare or irregular expenses): 5%-10%

But again, this breakdown is just a starting point. You’re in charge of which expenses matter most to you!


💡 Quick Tip: Make money easy. Enjoy the convenience of managing bills, deposits, transfers from one online bank account with SoFi.

The 50/30/20 Rule

One popular form of proportional budgeting is the 50/30/20 budget rule, originally popularized in All Your Worth: The Ultimate Lifetime Money Plan, written by Sen. Elizabeth Warren and her daughter, Amelia Warren Tyagi.

Per this rule, you’d divide up your income and spend 50% on needs (essential items) and 30% on wants (nonessential items); and commit 20% to savings and debt repayments beyond the minimum.

Of course, you’d then have to further extrapolate how much of that 50% would go to housing vs. food, for example, and how much of that 30% would go to dining out vs. streaming services.

Also, depending on your financial situation, the 20% allocated to savings and debt repayment may not be enough to meet both of those goals. Many financial planners recommend putting 15% of your pretax income towards retirement (including your contributions and any matching contributions from an employer), along with 5% of your monthly take-home pay for short-term savings goals (like building an emergency fund and going on vacation). That would use up the full 20%, leaving no room for aggressively paying down high-interest debt.

Which is to say, once again, that budget percentages are all about personalization. Which line items do you need to prioritize? Which can you minimize or cut?

How to Make Budget Percentages Work for You

Starting with the guidelines above, you can put budget percentages to work for you to help make your money map more effective … and also to ensure your money is going where you want it to go, rather than allowing it to end up where it will. Odds are, this exercise will be helpful, regardless of which of the different budgeting methods you use.

To start, determine all the categories that need to be accounted for — a list of everything you spend money on each and every month. This will include both necessary costs, like housing and food, as well as wants like entertainment costs, and important financial goals, like retirement savings and debt repayment.

Then you might start with fixed expenses (like your rent or mortgage payment, insurance payments, etc.) and determine what percentage of your overall monthly income they represent. That way, you’ll know how much you can allot for more flexible expenses, like groceries and entertainment.

This exercise will also reveal if you’re regularly overspending on a fixed expense. For instance, if you determine that your housing cost is closer to 50% of your budget than 30%, it might be time to consider getting a roommate, moving to a cheaper area, or boosting income by taking up a side hustle.

You may want to start by determining your budget percentages with your spending as is, and then rejigger the numbers to create a pie chart that will help you achieve your goals.

Maybe you want to spend less on streaming services and save more for travel or devote more of your income to repaying your student loans. It’s all possible with percentages.

Recommended: How to Make a Monthly Budget

The Takeaway

Slicing the pie into budget percentages makes it easier to meet financial goals and can be a major stress-reducer. When you know where your money is going, you don’t have to worry about where it all went. Allocating percentages to your spending and saving categories can help you better manage your money.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What is the 70/20/10 rule money?

The 70/20/10 rule suggests dividing your income into three parts: 70% for living expenses (including essential and nonessential expenses), 20% for savings and investments, and 10% for debt repayment and charitable donations. This rule helps maintain a balanced budget, ensuring you cover essentials, build wealth, and manage debts while also giving back.

How do you determine budget percentages?

To determine budget percentages, first track your income and expenses. Next, categorize expenses into essentials, discretionary spending, and savings. You can then use a budgeting method like the 50/30/20 rule as a guideline. Just keep in mind that you may need to adjust the percentages based on your financial goals and circumstances.

What is the 50/20/30 rule for your money?

The 50/20/30 rule suggests dividing your income into three parts: 50% for necessities like housing and food, 20% for savings and debt repayment, and 30% for wants and discretionary spending. This rule simplifies budgeting, helping you prioritize essential expenses while saving and enjoying your money.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q225-062