Consolidate Debt Under 5000
November 3rd, 2009
Question: A question about consolidating debts?
I have a car loan that’s about $20,000 at 7.9% interest, and credit card debts at about $5000 at 18.5% interest.
Is it possible to go to the bank that I’m with and have them consolidate my credit card debt under the car loan debt for the same interest rate (or less)? Would a bank do that, or do they not work that way?
Also, if they would do that, is it worth it for me to be paying less interest but with a larger amount?
Thanks.
Answer: Well you do not say what your credit is like..
But here are a few facts.
They may rewrite your car loan for you adding in your credit cards if your card is worth 25,000 basically it would be like taking out a personal loan to cover the cost of both. But your collateral would have to be worth what your trying to take out or close.
If your a home owner you can look to take out a home equity loan to cover all your debt, I believe the APR right now is under 6% around 5.6%.
But a lot of banks will not let you roll in your credit card debt into your loan but they may be willing to rewrite your loan but you may not end up with a 7.9 APR. It could end up being slightly higher or maybe lower it just depends on your credit score and the worth of the car.
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