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Information About Refinancing Your Car To Pay Off Credit Cards

I own my car a 2005 Suzuki, can I finance my car to pay off higher interest credit cards?

I own my car a 2005 Suzuki, can I finance my car to pay off higher interest credit cards?

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Bill's Answer
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Yes, you can finance your car. This form of a loan is called a title loan. You will need to approach your local banks or other loan providers, and offer the title of your car as a collateral for the loan. Your situation really depends on how good an interest rate and how much the new payment will be. Refinancing your car loan and using the cash from that to pay down your credit cards works the same way as taking out a personal loan to pay down the credit card debt. However, consider the following:

For car loan: you will likely get a lower rate with a secured loan. However, the rate will probably not significantly low since your car is now a used car. Also, how much you can borrow will depend on the value of your car. You should also think about how important your car is (i.e. do you need it to get to work). If you add 3 more years to your car loan, that's 3 more years where your car can be repossessed if something went wrong with the payment.

For personal loan: Unsecured personal loans are usually a lot more expensive, especially if you don't have a stellar credit history. However, the rate will still be a lot less than your credit cards. You will end up paying more money per month than if you just pay your credit cards' minimum payments, but over the life of the debt, you will pay a lot less interest. (You save in the long run).

If you would like to be contacted by qualified lenders, use this form: If you fill in your information, qualified lenders will contact you to discuss your options.

I hope the information provided helps you Find. Learn. Save.



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