refinance car loan?
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refinance car loan?
| Thu, 06-23-2005 - 9:02pm |
Hello Everyone! My name is Erin, I am 21 years old and I recently graduated from college with a debt of around 45K in student loans. I also owe about 4K on credit cards and 2K for my car. Right now it seems as if my debt situation is pretty bad, but I realize that college loan debt is in a sense "good debt" and my credit card debt is not that bad. I have a question...I recently realized that I only have 10 months left to pay on my car loan, which makes me very happy! My payments are 222 a month so that will free up money for me and my car is still in good shape so I know it will last for a while after the loan is through. I have run into a problem though, I need new rotors and some other things that will total around 400 dollars or so and I need to get them fixed ASAP so that I can have some piece of mind that my car won't break down. I don't have the money right now so my father suggested that I ask the bank for about 300-400 dollars extra and to refinance my loan for a year, so that I would only be paying 2 months longer than I already am and I could get the repairs fixed. Do you think this is a good idea? I have the option of putting the repairs on my credit card but my interest rate is 8 percent or so. I guess it's the best option but I'm wary of adding more time to my loan. I also have my grandmother as a co-signer on my original car loan and I'm not sure if asking for more money or refinancing is going to "hurt" her credit or her in any way. Or affect my credit. Thoughts? Thanks!

Hi there.
All my best,
Danni
Hello Erin,
I personnally like the idea of calling the bank and asking to defer your payments for 2 month. They will most likely do this if you have good credit and payment history. But I am pretty sure you can only do it once over the course of the loan.
Shannon
Shannon