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My sister has a car loan. It's got $15K to go and five years left to run. The payments are just under $300 a month. What's the smart thing to do? She needs to cut her monthly outgoings and has equity in her house to cover that amount. Is it better to borrow against the house for a much longer time and clear the car loan or try to get her payments cut by the car's finance company?
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What's the smart thing to do? She needs to cut her monthly outgoings and has equity in her house to cover that amount.
The smart thing to do is to sell the car and buy a used one for less than $1k and repay the car loan. Drive that clunker into the ground.Why risk the house? Is not the house more important than the car?
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What's the smart thing to do? She needs to cut her monthly outgoings and has equity in her house to cover that amount.
The smart thing to do is to sell the car and buy a used one for less than $1k and repay the car loan. Drive that clunker into the ground.Why risk the house? Is not the house more important than the car?
Yes! What a terrific answer. She should get rid of the car and buy something that will get her around where she needs to go. No more, no less. It's only a hunk of metal.
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I agree, a great answer from micharch. Cheapncheerful, she may be able to cut costs more by carpooling too. I was reading about carpooling sites today.
http://www.usnews.com/articles/business/small-business-entrepreneurs/200...
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I refinanced my car loan at MoneyAisle (it was free to use) and was able to save $78 per month.
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I've been trying to budget/save money for years! So any good deal that I come across I try to utilize. I read a blog post on AOL's walletpop the other day about a company called MoneyAisle. It does the online research for the consumer and has banks bid on us online, where we receive the top 3 rates to choose from for auto loans and refinancing. I went through the process and ended up saving $75 a month on my payment, which basically pays off my insurance. Right now the search process for the best rates is such a pain and dealers try to get the best dollar amount, so this is a super awesome tool. I def suggest taking a stab at going through the process, you will be shocked when you see what you get as a rate compared to what you are currently paying or what you are given by other banks/dealers. Hope this helps!
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If I were your sister I would contact the car company first, cheapncheerful. I don't think anyone should borrow against their home unless it's vital they have the money for survival. It should be a last resort because if they were to default on that, there goes the roof over their head. I have a real fear of homelessness.