Debt help needed.

organisemymind

Hi there folks
My hubby and I have had a terrible lightbulb moment. We are in debt to the tune of 25000. all spent by us. We have a question that I hope all of you great folks will be able to answer.

We have car finance. I know, what a stupid thing to do. we are definitely on a learning curve. My question is somewhat daft, and im embarrassed to say I don't know the answer.

Car Finance is over 48 months at 9.9%
we have paid 10 months payments.
If we move the finance to a cheaper loan, apr of 2.9% if we can get it. have great credit score. Would moving be the best thing to do?


Hubby thinks that we would be worse off in terms of interest. im afraid I have no idea.


Yours hopefully
OMM

ryanm8655

Depends - are there any early settlement fees/penalties?

[Deleted User]

Well no because all you’re doing is moving it.

It still doesn’t solve the issue at hand.

And your credit score means nothing to lenders

fatbelly

It's possible that he's right. You haven't said what kind of 'finance' it is but you have 38 months left and have headline rate of 9.9%apr. If you refinance at a lower rate (and there's no guarantee that you would get the best rates being already 25k in debt) over a longer period, you could actually pay more in interest and charges than sticking with the original deal.

What you need (and you've hit the right board here) is a strategy for getting debt free. That may not involve tinkering with the car finance at all because there might be other areas of higher concern.

If you could do a statement of affairs and post it her (please format for mse) that would be ideal.