Get out of debt auto refi/trade advice needed

[Sprinty]

I'm 2 years in to payig for a preowned SUV about break even with the loan/trade in value. I ave been considering trading it in for a less expensive one so that I can lower my payments and use that to help pay down my large cc balances. I would have a hard time finding something cheap enough to make it worth financing for less than 60 mos. So i was considering doing a refi on my current loan, going to a 48 month term. Interest rates are also a wash, I'm paying 2.9 and could get somewhere in the same neighborhood on a refi. My options are this: 1. refi current loan to extend payments by about a year. I would trade down some features obviously (nav, etc.) 2. find a different car to trade for and also use an extended term lowering payments slightly further than a refi. This could gain me a car with less miles than my current one, possibly even a MY newer.

My ultimate goal is to try and pay off my cc debt asap, if I leave things alone and make all payments as scheduled in about 3 years I'll be completely debt free, including no car payment. If I refi, I may be able to pay off cc debt faster, then snowball the payments into the auto loan.  Hopefully this makes sense, I'd love to hear some advice from you all.

[Creditaddict]

What is auto balance? Payment?

CC balance? interest rate?

[Sprinty]

Outstanding auto loan balance is 22k 36 mos remaining, cc debt is 25k total. Current car loan interest rate is 2.9, with refi rate for 48mos 2.74%. So i'd be adding a year on to the loan but saving about 200 per month on the payments which gives me a little more breathing room to save a bit and pay more towards cc balances.

I just did a mini app o rama to balance xfer my way into 0% interest on the cc debt so that all my payments will go to principal amount. I'll have 18 mos until i need to reallocate hopefully having a big chunk paid off. Balance is currently split between 2 card, 18k at 18%, and 7k at 7%. currently being charged about 300 per month in interest. I'm making more than minumum payments, but not making the progress that I want to.

I'm leaning toward the refi vs trading in, since both dw and i love our SUV and we need the room for the kids and gear whenever we take road trips. I know absolute best case would be to buy a super cheap ride and just pay off the cc debt but that's not really practical right now. I don't have enough saved up to pay for something in full. Leasing is another option to get something on the cheap, but at the end of the day, it's not worth it since i'd be starting from scratch again.

Longer term, my goal is to get everything paid off within 3-4 years and have no payments but rent/utilities and just start saving everything

[StartingOver10]

Actually in your case the refi does sound like the better way to go. Yes, it stretches out your payments and you will pay a little more interest, but you can then manage your funds more effectively given your plan.

[Creditaddict]

Id say yes with auto refi to but get that 18% credit card moved to something else ASAP!

[Sprinty]

CC balances are going to be spread across other accounts via 0% bt offers, so that i can make the most of the money i'm paying out. even with a 3% transfer fee, that will offset after 3months or so considering my added interest is about 300 per month between the two accounts i have balances on.

Paying the savings off the refi'd car loan (150-200) plus saving 300 in interest will let me knock off 25% of my balances over the next 18 months, without even looking for other areas to save or pay additionally.

[SamsungHDTV]

You should consider Chase Slate for BT, they offer $0 transfer fee if BT is done in 60 days of account opening. That should save you 3% of 25K cc debt, assuming they give you a high enough limit. But its 0% for 15 months on balances.

If you're unable to payoff your CC debt within the 0% promo period, maybe consider refinancing for 60 months instead of 48. Putting the additional payment savings towards the CC balances. Once the CC is done then of course the auto loan will go away quickly. Anything to avoid balances going back up to high interest rates.

[Sprinty]

I actually have a slate card already (it was converted automatically by Chase) i have a 0% bt offer but it's not a no fee one. The quoted interest rate to refi for 60 was 3.24, not a huge difference in the end, so I do have that option also. Payment difference is about 100 per month that way. Don't know if I want to string it out that far though, just in case anything goes wrong along the way. The SUV is already almost 4 years old, adding another 5 years makes me a little nervous, even though I'll have options along the way.

I haven't locked in yet, so i can always switch it up if I change my mind