16.4% APR $5,000 Auto Loan...HELP!

Home
>
Debt Consolidation
>
16.4% APR $5,000 Auto Loan...HELP!

16.4% APR $5,000 Auto Loan...HELP!

Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:

DEAR LoanResources.Net:

I was very impressed with your article entitled "8 Point Checklist, Evaluating Online Lenders."

I have tried several sources to refinance my auto. I only have 2 more years to pay $245.04 a month. I owe 4,414.00 on the car loan.

This may not seem like a lot of money but I would like a lower interest rate on my car loan which is now $16.4% APR.

I want to still pay it off in 24 months but at a lower rate so that I can use the money saved to help pay off other bills.

In my internet searches, the auto refinance loans required that you borrow more money than I need. I tried to search for unsecured personal loans on your website and they also required that I borrow more money.

I have a very good credit record and I am working to get some of my bills paid off.

Is there anything you can suggest so that I can get a lower rate auto loan for under $5,000? Any assistance will be appreciated.

Thanks. Geraldine W.

DEAR Geraldine:

Sorry I have not gotten back to you sooner. I took a couple weeks off to be with family...Thanks for the compliment on the article!

Anyway, I read your email and I do indeed have a suggestion or two that I'm happy to share.

A COUPLE THINGS INITIALLY:

1. First, you're paying a very high interest rate at 16.4% APR for an auto loan! I'm going to assume that your statement as to your good credit is accurate. If that's true, then you do indeed need to fix this.

2. Since you only need $5000, with the intention of paying it off in 2 years or less, I don't think you should look for a refinance auto loan or a refinance on your home. Indeed, the bank is going to want to loan you much more money, usually at least $25,000. While a refinance or equity loan on your home does offer tax benefits, we're only talking about interest on $5,000 over the course of 2 years. I have another idea you may not have considered.

HAVE YOU CONSIDERED?

Have you considered just putting the balance of your car loan on a credit card that has a lower interest rate?

1. Credit Cards are, indeed, unsecured lines of credit with financial institutions.

2. They are the perfect financial vehicle for a $5,000 transfer of debt, with added flexibility, and you should be able to find an interest rate between 9 to 11%, and better, on average.

3. IN ADDITION! Once approved, the bank will usually give you blank checks for balance transfers (sometimes they'll just do it for you right over the phone)...,

4. AND GUESS WHAT? The majority of the time, the incentive interest rates on the balance transfers are EXTREMELY low; sometimes zero percent for up to 6 months to a year.

5. IN ADDITION! you can apply for incentive cards that provide rewards for your spending....free airline miles, cash back programs, etc. I use the American Express Blue, and I get cash back of up to 3% on everything I spend. So, for $5,000, 3% cash back, AMEX? pays me $150.

How do you like them apples? The bank pays YOU to borrow money.

RECOMMENDED PLAN OF ACTION:

So, Geraldine, here's what I recommend you do:

1. Go back to our website, and explore the credit card offers we've recommended. We've picked out what we think are the best offers, and there are a LOT of them, so think of it as a much needed shopping trip! Pay particular attention to our links for "incentive cards". We have two pages of them.

2. Apply for whatever card or cards suit your tastes and needs. There are so many great reward cards. Limit yourself to only your imagination.

3. Get approved, receive card, and receive balance transfer checks.

4. Pay off loan to 16.4% bank!

5. Pay off credit card loan (with extremely low rate and incentives), at your leisure!

?And enjoy the fact that you just made an excellent financial move, saved money, made money, and gave yourself the flexibility to manage your debt on your own schedule...

Hope this helps...Let me know how it all works out.

We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

Publisher's Directions:

This article may be freely distributed so long as the copyright, author's information, disclaimer, and an active link (where possible) are included.

Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Copyright 2005, by LoanResources.Org , This article is available in full format at: Auto Loan Help , Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services.

In The News:

Yahoo! News: Top Stories

Bush signs jobless benefits extension (AP)

AP - With no end in sight to economic bad news, President George W. Bush on Friday ensured that millions of laid-off workers will keep getting their unemployment checks as the year-end holidays approach.

Stocks open higher after steep sell-off (AP)

AP - Wall Street is experiencing some relief, with stocks opening sharply higher, following a report that a pounded-down Citigroup Inc. might put itself up for sale.

Gov't: AG doing better after collapse (AP)

AP - Attorney General Michael Mukasey was feeling better Friday after collapsing during a speech, his spokeswoman said.

Bush effigy burned in anti-US protest in Baghdad (AP)

AP - Followers of a Shiite cleric on Friday stomped on and burned an effigy of President George W. Bush in the same central Baghdad square where Iraqis beat a toppled statue of Saddam Hussein with their sandals five years earlier.

Kenya: Somali pirates make $150M in a year (AP)

AP - Somali pirates have collected more than $150 million in ransoms over the past year, Kenya's foreign affairs minister said Friday, calling on ship owners not to pay when their vessels are hijacked.

Wal-Mart names Duke as next chief executive (AP)

AP - Wal-Mart Stores Inc., the world's largest retailer, unexpectedly announced Friday its chief executive will retire in February and be replaced by the head of its international division, Mike Duke.

Americans still giving, despite economic meltdown (AP)

AP - As more Americans turn to charity amid worsening economic gloom, operators of food banks and other aid groups are relying on the surprisingly resilient generosity of their neighbors and finding that even when times are tough, people still give.

Palin pardons turkey while others slaughtered (AP)

AP - Gov. Sarah Palin has granted the traditional Thanksgiving pardon to one lucky turkey, but the video that shocked some viewers captured what was happening in the background.

Madonna, Ritchie granted preliminary divorce (AP)

AP - The show-business marriage that began in a Scottish castle came to an end in a drab London courtroom Friday as Madonna and Guy Ritchie were granted a preliminary decree of divorce.

For toilet-less Vermont library, a new chapter (AP)

AP - When you gotta go, you gotta go. But for decades, when you had to go in the Roxbury Free Library, you really had to go somewhere else, that is.

Obama on track to name Clinton as top diplomat (Reuters)

Reuters - Retired Marine Gen. James Jones emerged as a leading contender for White House national security adviser as President-elect Barack Obama worked on Thursday to assemble his foreign policy team.

Central bankers wary of deflation (Reuters)

Reuters - Euro zone demand is plunging and price pressures vanishing, business surveys showed on Friday, while central bankers weighed the bleak prospect of deflation.

Attorney General Mukasey sounds well: White House (Reuters)

Reuters - President George W. Bush spoke with U.S. Attorney General Michael Mukasey on Friday and the top U.S. law enforcement official sounded well after collapsing during a speech, the White House said.

Bush signs law extending unemployment insurance (Reuters)

Reuters - President George W. Bush on Friday signed into law an extension of unemployment benefits, the White House said.

Thousands protest in Iraq against U.S. troops pact (Reuters)

Reuters - Followers of Shi'ite cleric Moqtada al-Sadr marched on Friday against a pact letting U.S. forces stay in Iraq until 2011, toppling an effigy of President George W. Bush where U.S. troops once tore down a statue of Saddam Hussein.

Citigroup eyes options, including merger (Reuters)

Reuters - Citigroup Inc lost more than one-quarter of its market value on growing worries over whether it has enough capital to withstand billions of dollars of potential losses and despite new support from its largest individual investor.

Verizon staff had unauthorized access to Obama's cell (Reuters)

Reuters - Verizon Wireless said on Thursday that some employees had gained unauthorized access and viewed a personal cell phone account held by President-elect Barack Obama that is now inactive.

Islamists on trail of Somali pirates (Reuters)

Reuters - Dozens of Somali Islamist insurgents stormed a port on Friday hunting the pirates behind the seizure of a Saudi supertanker that was the world's biggest hijack, a local elder said.

Use of nuclear weapons more likely in future: US intelligence (AFP)

AFP - The use of nuclear weapons will grow increasingly likely by 2025, according to a bleak US intelligence report that warns that US global dominance is likely to weaken over the next two decades.

Thousands of Sadrists protest Iraq-US military pact (AFP)

AFP - Thousands of Shiite followers of the firebrand anti-American cleric Moqtada al-Sadr gathered in Baghdad on Friday to protest a security accord that would allow US troops to remain in Iraq until 2011.

16.4% APR $5,000 Auto Loan...HELP!

Debt Consolidation Debt Consolidation