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I have one credit card with a $7,000 balance with 14% interest rate . I am tired of paying the minimum payment and hardly making a dent and I just want to pay off the balance and be done with the card. for good. I have been looking at some loans from various financial institutions and it looks like I can get a loan to pay off the balance at a lower interest rate, keep the same monthly payment amount, and pay off the loan about 1.5-2 years faster than paying the credit card directly. Plus I would save a good bit in interest.
Within the next nine months, I plan to buy a minivan via financing and by trading in one of my existing cars. Would obtaining a loan to pay off the credit card hamper my ability to get a new/used car loan? Also, would it make sense to request a $10,000 loan and use $7,000 to pay off the credit card and use the $3,000 as a down payment on the mini van? It looks like the trade in values I am getting for the car I want to trade in are about $3,000 under what will be owned on that car's loan at time of trade in. Or should I use $3,000 towards paying down the balance of the existing car so I am not rolling any balance over into the minivan loan?
My credit score is 750. I have a mortgage, two car loans, and this credit card in my name.
Thanks, just wanted to use CD as my sounding board..
I have one credit card with a $7,000 balance with 14% interest rate . I am tired of paying the minimum payment and hardly making a dent and I just want to pay off the balance and be done with the card. for good. I have been looking at some loans from various financial institutions and it looks like I can get a loan to pay off the balance at a lower interest rate, keep the same monthly payment amount, and pay off the loan about 1.5-2 years faster than paying the credit card directly. Plus I would save a good bit in interest.
Within the next nine months, I plan to buy a minivan via financing and by trading in one of my existing cars.Would obtaining a loan to pay off the credit card hamper my ability to get a new/used car loan? Also, would it make sense to request a $10,000 loan and use $7,000 to pay off the credit card and use the $3,000 as a down payment on the mini van? It looks like the trade in values I am getting for the car I want to trade in are about $3,000 under what will be owned on that car's loan at time of trade in. Or should I use $3,000 towards paying down the balance of the existing car so I am not rolling any balance over into the minivan loan?
My credit score is 750. I have a mortgage, two car loans, and this credit card in my name.
Thanks, just wanted to use CD as my sounding board..
From pure debt-to-income perspective, you are good. By doing that you are re-structuring your loan to lower interest rate and that increases your borrowing capacity. So, you can pile more debt, if you wish.
But take a step and look at what you are trying to accomplish.
1) You have a 7K debt at 14%
2) You have a car that is under water by 3K that you can't sell without bringing money to the table or roll into another loan (a bad idea).
So far you are down 10K.
And now you want to finance a new car?
After all this debt massaging you are not going to solve your original problem
Quote:
I am tired of paying the minimum payment and hardly making a dent and I just want to pay off the balance and be done with the card
Expecting a third child next summer, need more room in the car. Both of our existing ones are coupes.
Birth control/shrink wrapping the Johnson isn't an option?
Lower interest rate isn't going to hurt anything and a $7,000 personal loan isn't really going to look any different than a $7,000 credit card balance. But if all you can do right now is make minimum payments and you're going to add a third kid and a car payment to the mixture? I'm not exactly sure how you see that working out. If you're planning on freeing up room in the budget for the car payment and baby expenses, free it up now and put a dent in the credit card/personal loan balance.
I think the personal loan to pay off the credit card is not a bad idea..However. Only take out enough to pay off CC balance. Dont borrow to make a down payment.
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Quote:
Originally Posted by Respondent
How can you make this determination when the OP said nothing about his/her income?
Am I missing something??
Probably saw it when the OP posted it in another thread.
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