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Established Contributor
sccredit
Posts: 770
Registered: ‎09-14-2012

Re: Accelerate Auto Payment Plan


Creditaddict wrote:

twinkle wrote:

I agree!

 

Update:  I applied to refinance with another CU today and was approved ...pending final review.

 

Term:

 

60 months 

APR 13.75 %

$420 monthly payment

 

I'm required to pay approx $7200 to bring my balance current. The rep mentioned paying this in full or applying for a loan to cover it.  Should I keep what I currently have?

 

What are your thoughts?


Bring Current??

What is the amount you owe Navy

What is the amount of this new loan?

Why would you not get the new loan for just 36 or 48 months?


OP's stated in the first post that the car is upside down.  Car note is not late, just upside down

Mortgage $299k/$310k
Autos Loans $49.5k/$60k
Unsecured Lines $157.2k

Discover FICO 732
DCU FICO 718

Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008

Re: Accelerate Auto Payment Plan

Correct.  Payments are current.   I'm approx $7200 upside down.

I applied over the phone and wasn't offered any other terms.  I will inquire about shorter terms when I here back from CU.

 

 

Mega Contributor
Creditaddict
Posts: 18,497
Registered: ‎10-23-2007

Re: Accelerate Auto Payment Plan

So they are only willing to lend 100% value?
What are they saying value is?
Fico Scores: EQ 639 Navy, TU 667 GE, EX 677 Prosper (06-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008

Re: Accelerate Auto Payment Plan

valued at $18000

Mega Contributor
Creditaddict
Posts: 18,497
Registered: ‎10-23-2007

Re: Accelerate Auto Payment Plan

What is your current payment again?
What would be your option for the$7200 shortage?
Apply for capitalone refi and see what they will approve you for.
Fico Scores: EQ 639 Navy, TU 667 GE, EX 677 Prosper (06-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008

Re: Accelerate Auto Payment Plan

Current  payment $700 monthly.

I would need to finance the $7200.

Ok. I will apply for Capital One refinance and update.

 

Thanks 

 

Established Member
xdfanatic
Posts: 26
Registered: ‎02-20-2013

Re: Accelerate Auto Payment Plan

One thing that I just wanted to mention after reading all of this is that you should make sure you have some sort of gap coverage if you are that upside down.  That will be a huge help with the debt should something happen to the vehicle while you are trying to get out from under the debt.

 

Also what I have done in the past is to double up payments every other month or try paying every two weeks an extra quarter of a payment.  This way you can pay when you have it and if you don't you are okay.  Currently I am about 5K upside down myself and I am going to work out a plan to pay at least half of this down so that when I trade out the vehicle for my lease that it will break even.  For me it is just paying off a loan my wife got when she had bad credit and it was all we could get.  Good luck with your refi, just make sure that it actually makes sense and you aren't just getting a better rate but end up paying the same amount.

 

Jimmy

Mega Contributor
Creditaddict
Posts: 18,497
Registered: ‎10-23-2007

Re: Accelerate Auto Payment Plan

at 13.75% and going back to 60 months and you having to put $7200 on another loan or credit card it is actually going to cost you much much more than just keeping your current loan if you can afford the $700 payment... if you are able to eek out an extra $100-$200 here or there and apply that to principle you are going to start seeing that loan come down faster.

but interested to see if someone else like capitalone would take more than 100%... Navy would take 125% if you were financing with them... surprised DCU won't take more.

Fico Scores: EQ 639 Navy, TU 667 GE, EX 677 Prosper (06-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008

Re: Accelerate Auto Payment Plan

Update:  I applied for Capital One refinance online and was denied. 

I decided not to finance/pay $7200 with another CU. 

I will continue paying my car payments bau, adding extra payments...when possible.  

 

 

Thank you ALL! 

Valued Contributor
Pupeitmeister
Posts: 1,148
Registered: ‎11-11-2013

Re: Accelerate Auto Payment Plan

[ Edited ]

twinkle wrote:

Update:  I applied for Capital One refinance online and was denied. 

I decided not to finance/pay $7200 with another CU. 

I will continue paying my car payments bau, adding extra payments...when possible.  

 

 

Thank you ALL! 


That is the best option IMHO!.. Kudos to you for seeing the value of advise on these boards!... I recommend an ammortization calculator.  Put i your total due, your interest rate, and the number of months left on the loan.  Every time you write a check for the payment, Look at the "interest payment column" for the next month.  If you can pay that amount .. highlight that month as paid.. for example :   IF you paid March principle of 280.00 with the February check, you just made a "double payment" for only $980.  in essence, and saved the 420 in interest.  This works for all "simple interest loans" btw.   Mark that month paid... You would be surprised how fast it will drop if you look at it like that,   In this example, every time you do so,  you save that interest, so once a quarter drops you by 4 payments, or 2800 dollars a year on the debt. and in this example, costs you approx 1100.. so instant savings of 1700.00   Just my 2c :smileyhappy: .. Good luck with getting out from being upside down!

 

Month    Payment amount    rate    interest    principal    balance
Jan                                 700    15%    425                 275    24000
Feb                                 700    15%    423                 277    23733
march                            700    15%    420                 280    23453
April                                700    15%    419                 281    23172

 

 

edited to mention:  I pulled these numbers out of thin air, and they are not accurate to anyones situation (unless its pure dumb luck).  Feel free to PM me if you need assistance in further clarification.


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