Freedom From Debt » car loan

Pay off debt question?

Guest Author — Mon, 01 Jun 2009 14:59:10 +0000

on_the_bb asked:

I have $5200 in savings. I have a credit card that has $3200 on it.

I just bought a house and believe I am living simply and within my means. After all mortgage payments, car loan, student loans, and the above mentioned credit card, I have about $555 for the month.

If I consider electric and phone/internet that’s about $150. Leaving me with $405 for gas and groceries. Sewer and water bill are negligible.

The credit card has a minimum payment of about $80 monthly.

I’m most comfortable having the least amount in monthly expenditures.

Would it be wise to just pay off the credit card with the money from savings and free up that $80 each month? I’d then have about $2000 in savings and would hopefully be able to save a little bit each month, but my monthly expenditures would be less.

Advice appreciated.

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Technorati Tags: car loan, Debt Question, Expenditures, Mortgage Payments, student loans

How does debt consolidation work?

Guest Author — Tue, 12 May 2009 00:07:07 +0000

Lib asked:

can I still keep one credit card? Will I be able to get a car loan when my lease expires? How will it effect my credit?

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Technorati Tags: car loan, credit card, Debt Consolidation Work

Which would you pay off?

Guest Author — Tue, 28 Apr 2009 13:43:44 +0000

Paul H asked:

Would you pay off 2700.00 on a car loan at 4.9% and 300.00 a month for approx. 9 more months or 3,300 in credit card debt at 8.9%?

We send approx. 80.00 a month over the scheduled credit card payment each month.

My wife says keep making the car payments as others will see we make all our payments on time and then add more to the credit card debt.

I say pay off the car, free up 300 a month and add a bit more to the CC, and send that payment also to the credit card debt.

We are considering one or the other to free more money up per month since I am not getting a raise in 2009.

What would you do?

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Technorati Tags: car loan, Credit Card Debt, Credit Card Payment, Getting A Raise, money

How To Buy a Vehicle Despite Having Bad Credit

Guest Author — Sun, 02 Nov 2008 12:11:05 +0000

Having a bad credit makes it hard for you to buy a car. It is a smart thing to do to apply for auto and financial loans from banks and financial companies. Also read about vehicle insurance online.

This no longer applies because you’re more likely to be able to get auto financing now. These days, the majority of credit unions, banking institutions and lending companies are making loans to individuals with poor credit histories. The credit requirements in order to get a loan have become so wide that a car is within almost everyone’s reach.

There are steps you can take to allow you to purchase an automobile even if your credit history is poor. First of all, it will be necessary for you to work diligently to retain your capital. The marks on your credit and the work you are willing to do before getting to the auto dealership will determine what kind of deal you will be able to get. You should also see about free car insurance quotes.

Remember that dealers want you to buy merchandise from them, whether you have bad credit or good credit. In addition, the dealers have financing agreement with credit unions, banks and finance companies. You may not acquire the utmost rate available, but they resolve to get you in a vehicle.

It is also necessary for you remember that traders get a cut of all financing agreements they get. A mortgage you obtained using a broker can have a higher interest rate than one you got for yourself at a bank or credit union.

The next step is to consult with the lender in person. It is an excellent thought to seek for an auto loan in person. Screw up a little bravery and stare the loan officer in the eye. Be upfront about the problems you’ve had in the earlier period. You should always be honest.

Thirdly, go over the credit report and look for errors. Before you start comparing rates, make sure to get a copy of your credit report. make sure all information is accurate and up to date The last thing you need is to get bumped up to a higher rate because of an error.

The next thing is to line up financing first and then shop. Start early. Apply for a loan before you buy a car so you will know what you can afford. After you have determined the size of the loan you can safely handle, you will be able to decide on the type of vehicle that fits into your finances.

When the time is right, consumer advocates advise dividing your negotiations with an auto dealership into three distinct transactions: trade-in price, new vehicle price, and financing terms. A car salesman will attempt to bump this added costs jointly and don’t let him. Be careful about everything he is writing down.

Don’t let the interest rates fool you. This is the last thing that you should remember. It is easy to get suckered into a terrible agreement. You should keep away from spot release.

In some cases, the dealer will allow you to take the vehicle home while they’re getting your financing approved. Do not do it. There is a big possibility that they could appear back and tell you that they could not get the financing agreement they have assured you. You may have to cough up a bigger down payment or pay a higher interest rate or both.

Many individuals with poor credit assume that they can’t and don’t even attempt it, but don’t just assume without even looking to see if you can obtain a loan with a better APR. For more on cheapest online car insurance rate quote.

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Technorati Tags: buy car bad credit, car credit, car loan