Does Anyone Know Of A Way To Refinance This Loan At A L
Q: I don't know where else to ask so here goes. My wife & I have a pretty bad credit history due to job loss, yadda yadda. About a year ago we bought a used car and had to go with a "secondary lender". The loan was for about 9K and we have made a years worth of $270.00 payments. The payoff is still about 7.5K due to the 20+ % rate. The question is - does anyone know of a way to refinance this loan at a lower rate? I would be glad to pay the same or even a little more as long as the cash wasn't going to pay the interest. Oh, yes I do pay extra every payment, it's just not enough to matter that much.
A: Do you own a home? If you do, you could apply for a Home Equity loan. Then the interest would be tax deductable, and the rate would be at least half what you are paying now. You may just have to tighten the belts again, and pay as much as you can each month to lower the total interest you are going to pay over the life of the loan. Paying just $50 a month more will save you $1,000.00 in interest and pay it off almost a year sooner. Do you have life insurance you can borrow against? You could always go back to your regular bank and see if they would give you a loan now. Since you've had a year of regular payments, your credit is probably looking a little better. .