Can i refinance my car loan to pay off credit card debt?

5 Comment(s)

1. How much equity do you have in that car? Your credit union won’t give you a loan for more than the car is worth.

   It isn’t a good idea to shift debt to another loan. People tend to run the credit cards back up. They are stuck with credit card payments and that bigger loan.

   Set up a budget and eliminate all the extras. Take every penny you can squeeze out of that budget and throw it on the highest interest rate credit card, while making minimum payments on the rest. When the highest rate card is paid in full, move to the next til they are all paid in full.

   When you get those cards paid off, only charge what you can afford to pay in full every month. Save all that interest and stay out of debt.

   bdancer222 | Sep 3, 2009 | Reply

2. You can do it, just contact the credit union. It depends on the year of the car, but as long as its within there guidelines you can take out as much as KBB.com says your car is worth.

   tim l | Sep 5, 2009 | Reply

3. You want to shift your unsecured debt to a secured debt loan. Not a good idea. Also, as another poster said, you’ll never get a car loan refi for greater than the current market value of the car.

   src50 | Sep 7, 2009 | Reply

4. I agree. What type of car do you have? Look it up on kbb.com and see how much the trade-in value is. Take that, and subract out the amount you still have to pay on the car. That’s how much you can get from the new loan. But really the focus of refinancing is going to be reducing your money payment or interest rate. If you can do both of those, then go for it.

   Once you refinance the amount you OWE on the car, take the money saved and apply it directly to the high interest cards. Pay the minimum on the car until the high interest car dis paid off.

   Always pay off high interest things first with any extra money you get.

   So overall is it possible? Yes, but it depends on your financial situation, what kind of deal you can get, and what value your car still holds.

   Kate | Sep 8, 2009 | Reply

5. If you think that you are paying a higher repayment amount for your existing car loanyour monthly costs. Secondly, you may avail a competitive interest rate. Thirdly, you could be getting a flexible repayment period. Overall, you will be managing your loan a lot better.

   Saniya | Sep 9, 2009 | Reply

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