Best way to 'pay off' the difference in a car loan?

envy_2

Hi All,

Im a bit stuck and well feel a little depressed about this issue, and have felt like it for some time.

I am just about to move out, and currently own a car which was is worth (realistically) £11,250. However as it seems with all car loans, i owe £14,250!!

Theres no way around the price, so im stuck with a negative balance of £3000. I am just about to move out, and have a credit card balance of £1400.

Im 22, and my total debt is £4400 which i dont like to be honest, as its unsecured.

So i have two options (and maybe more, but i dont know).

I could sell the car, and put the £3000 on my credit card which is currently 0% until april 2008. However as with all Credit Cards, payments are sometimes lower and more likely to not pay the amount needed on odd months for whatever reasons. That would take me upto £4400 on the credit, which i think is rather high :think:

The other option is to considerate my debts into £4400 personal loan, and pay that off over maybe 18/24 months. That of course is subject to a 6%+ Interest Rate, but i would need to stick to the set amounts.

What do you guys & girls think, i feel im stuck between a rock and a hard place and not really too sure what i should do. Are there any other options available?

I know one of which is to hand a car back, but im not close enough to the amount, and i think that would go against my credit rating?

Thanks for any advice

immoral_angeluk

What other debts do you have and what aprs are they?

cat4772

Envy

We need a full SOA before we can pick it apart and offer advice. BUT in general we do not support consolidating loans. Once you've pulled together a SOA (see MSE Andrea's thread at the top of the DFW page - then Southernscouser's SOA) I'd suggest going to whatsthecost and playing about with interst rates, minimum payments and seeing what comes up.

Keep us posted.

Cat.x