Consolidation loan at 17%?

Date: Mon, 01/24/2011 - 20:26

Submitted by knowledgeunderstanding
on Mon, 01/24/2011 - 20:26

Posts: Credits: [Donate]

Total Replies: 1

I applied for a refinance of my car loan (which is currently 11%) and the bank came back with a loan offer of $25,000 at 17% (simple interest) for 60 months.. They said they would payoff the car and my credit card bills in one loan and that I would even have some money left over after paying those things. My monthly payments would be a little over $620. I plan on paying more per month because I do not want to carry out the loan for five years when I only have 2 1/2 years left on my original car loan. Also, my credit card interest rates are between 18 and 25%. I would like to know if this is a good rate or is this a bad move. My credit is between 650 and 700, all payments on car and credit cards are made on time, but I am using about 80% of my card limits. I currently make over $1000 per month in credit card and car payments. Should I keep looking for a straight car refinance (which is what I wanted in the first place, at a lower interest rate) or consider this option? And, I also have an offer of 6.5% on just a car refinance, which would cut my car payments by almost $300. Thanks in advance.

Well, it depends on a few things... first, what exactly are you

Well, it depends on a few things...

first, what exactly are your goals with the refi? It also matters how much credit card debt you are talking about. If you have small balances, you would be costing yourself more by going with this 17% loan than if you went only with the car refi at 6.5%. You also didnt give us the full information--such as the amount and term of the 6.5% refi. It makes a difference. I will caution you on this--be careful not to be so much focused on the payment amount--I could lower your payment by $400, but the term could be significantly longer than a loan with a payment that's $300 lower. you need to write down all the details to come up with a total of exactly what you would be spending in each case. You said that you are not behind on your payments now, which means you can afford the monthly note on either of these plans because they both would give you lower payments than what youre currently paying. So take the time and look at all the figures....and compare the total amount you would be spending each way. Thats what I would do.

lrhall41

Submitted by skydivr7673 on Mon, 01/24/2011 - 23:13

( Posts: 2036 | Credits: )