Should I refinance my car loan?

I%26#039;m not proud of this but I have some credit card debt (I was dumb, didn%26#039;t make much money as I do now, and no longer use my cards) and would like to find a way to pay them faster. I have three cards totalling $6,400 with an average rate of 21.69%

I have a car loan with only two years left with a low 2.9% rate. My payments are $323.

So my question is, is it more wise to get a separate low interest rate loan to pay my credit cards (no I won%26#039;t use them because they aren%26#039;t even close to maxed out currently) or refinance my car to a 5 year loan to free up more money to pay my credit card debt faster?

FYI: I do have really good credit, never pay late. I make at least $1200 a month and my only bills is my car payment, car insurance. And of course I like to have money for gas, clothes, toiletries, and some groceries/lunch.

Should I refinance my car loan?

I commend you for realizing and addressing the problem with your credit card balances.

Your situation really depends on how good an interest rate and how much the new payment will be. Refinancing your car loan and use the cash from that to pay down your credit cards works the same way as taking out a personal loan to pay down the credit card debt. However, consider the following:

For car loan: you will likely get a lower rate with a secured loan. However, the rate will probably not be as low as 2.9%, since your car is now a used car. Also, how much you can borrow will depend on the value of your car. You should also think about how important your car is (i.e. do you need it to get to work). If you add 3 more years to your car loan, that%26#039;s 3 more years where your car can be repossessed if something went wrong with the payment.

For personal loan: Unsecured personal loans are usually a lot more expensive, especially if you don%26#039;t have a stellar credit history. However, the rate will still be a lot less than your credit cards. You will end up paying more money per month than if you just pay your credit cards%26#039; minimum payments, but over the life of the debt, you will pay a lot less interest. (You save in the long run).

Btw, a $6,400 loan at 14% over 3 years has a monthly payment of about $218.74

I recommend:

1) If I were you, I would prefer to get a personal loan that has a rate no higher than 15% and allows you to make prepayments without penalty. Then I would make sure I pay off the credit cards every month so that I don%26#039;t pay any interest charges, and then use a portion of what is left to pay down the personal loan.

You can try to get the personal loan at your bank or try person to person lending websites like www.prosper.com

2) Car loan is also a viable choice. I just wouldn%26#039;t want to risk my car for a longer period of time.

Should I refinance my car loan?

Don%26#039;t touch your car loan. You will have to pay it it full with the interest as a prepaid penalty. Get a loan to pay off the 6400 and cut up you credit cards.

Should I refinance my car loan?

Never refinance the car and over extend the payments. These things lose value every minute they exist. You will be paying 3 extra years on a car worth nothing in trade in. If anything see if you can pay it off early to free up monies.

See if you can wrap up the CC%26#039;s in a lower rate loan or card and lock up the old ones.