Need advice on car loans

dealmama · 04-07-2006, 10:33 AM

Hey thanks for listening. We are just starting out paying off our debt, we just paid off $5000 in medical and cc bills so we are thrilled with that. Our huge problem is our car loans and student loan. We were dumb when we bought our cars and our interest rates are sky high on them. So we are very very very upside down in them so selling them seems impossible... do I need to just wait 4 years until their paid off to get out of debt or does anyone have any ideas.
thanks for your time.

homesteadmamma · 04-07-2006, 10:54 AM

Even with high interest rates, could you sell one?

Also you don't say if you have anymore debt other than student loans. If not, the money you used to pay off your debts you mentioned could be snowballed into paying off a car.

Along with that, any extra money you have put towards one of the loans. It's surprising how quickly the debt will come down. Is there anything you can sell to raise extra cash? Can you sell anything through ebay?

Make sure when you put extra money towards a car loan, that it goes towards principal only.

Valerie in WA · 04-07-2006, 12:02 PM

Contact your bank or credit union - even if they don't currently hold the loans - they frequently refinance auto loans (for a better rate). If your bank does currently hold the loan and won't offer you anything better, contact the competing banks in your town/city.

The same might be true for student loans - it doesn't hurt to ask.

And

Katybird · 04-07-2006, 01:52 PM

I second the advice of shopping your loan around for refinancing. It may save you a lot of money.

dealmama · 04-07-2006, 11:48 PM

thanks for your replies.... do you know what banks charge to refinance cars on average? Is it worth the fees?
thanks

Valerie in WA · 04-08-2006, 01:58 PM

The one time we did it, it was with the same lender and there was no fee. It was our credit union.

Start-Living · 04-18-2006, 05:29 PM

When we bought our first BRAND NEW car, we were 19 & 20 yrs., the interest was 11% on it, we didn't know anything about interest rates. We just wanted the car. 1.5 years down the road, most of our money is still going towards the interest. We got it refinance, and get a 4.75% interest, we save a total of $5000 by getting it refianance.

After the first 6 months of getting the car, I call our credit union once every few months to see if we can get a lower interest rates. Our credit union charge a small fee, but overall we still end up paying less by refinance. I would suggest calling around to refinance your car, (the sooner, the better).

dwallyfam · 04-18-2006, 07:19 PM

I agree with everyone else. Call and try to refinance. The most they can tell you is no.

Kellie