Paying off Auto Loan with CCs

[Anonymous]

---

@Anonymous wrote:

VEEnVEGAS -

There may be a hybrid approach to your scenario.

Find out what value you can refi with a good low, fixed rate in the 3.75 to 4.6% range.  Then move the negative equity to your 0% BT, which is most likely a more managable amount, lower utilization and easier to pay off during the 0% time frame.  Refi the difference with your low rate fixed auto loan.

Now you got the best of both worlds and didn't abuse your CC excessively.  Anyway, just a thought on the subject.

---

Thanks for your response John. This was actually one of the alternatives I had considered. Possibly it's the route I should go. I'd pay less interest, not spook my CC companies, and still have an installment loan reporting. All good stuff.

I just need to plug in these numbers and see how long it will take to pay everything off this way. I really liked the idea of being debt free in 12-14 months.

[Anonymous]

---

@GomerPyle wrote:
I would seek to buy a new car and obtain 0% financing in order to get out from under an upside down situation.This would be the best of both worlds. It is truly a buyers market in the automotive industry. If you are not a good trader of cars hire a trading company to make the deal for you. Car trading is an art form.

---

I also thought of doing this. I'm just not sure I want another long term auto loan right now. I also like my little car and it has only 41,000 miles on it.

I've really had no experience buying cars (part of the reason I'm in this situation now) and definitely don't want to end up in another upside-down loan.

[Anonymous]

Who said long term?  Go with a 36 month note and pay if off in 12.  You get the benefits of low APR, a positive loan with your CU and minimize the issues of moving balances to CC.

Minimums are just that after all....so just go for the maximums

[Anonymous]

---

@Anonymous wrote:

Who said long term?  Go with a 36 month note and pay if off in 12.  You get the benefits of low APR, a positive loan with your CU and minimize the issues of moving balances to CC.

Minimums are just that after all....so just go for the maximums

---

When I spoke of long term I was replying to Gomers suggestion of a new car loan. There is no way I could pay off a new car loan in 12 months.

Definitely I would repay in 12 months if I go the route you suggested above and pay down, then refi the car with a CU.

[Anonymous]

---

@Anonymous wrote:

I am considering using several 0% BTs to pay off my uber high auto loan.( Loan was obtained when I had very low scores and no auto score)  I know this isn't a very popular solution with most posters here, but I would love to hear from anyone who has done this in the past year or so.

My situation:

I am currently upside-down in the auto loan so I can' do a refi.  Payoff on the loan is $8200....if I continue to make payments for the remaining 24 months on the loan I will have paid $9420. A total of $1220 interest.

I have four 0% APR BT offers at the moment that I could use. I was thinking of transfering $2000 onto each of them to pay off the auto loan.

 Citibank:   $4000 limit/ 0 balance        0% BT for 9 months  3% fee    would cost me $60   

 US Bank   $8000 limit/1900 balance    0% BT  for 12 mths. 3% fee     would cost $60

 Discover    $5000 limit/1100 balance    0% BT  and purchase for 12 mths  3% fee  would cost $60

 Cap One    $4500 limit/1800 balance   0% BT for life  3% fee capped at $50   would cost $50

Total balance tranfer fees $230

The balances on these cards are all at 0% APR for 12 months except for Cap One which is at 3.9 for life

At this time I am paying $600-$700 montly toward credit cards, $392 on auto loan. If I do this I would apply all $1000-$1100 toward CCs and would be debt free within 13 months and would save  $990 interest.

The bad part of the plan of course is that I would have 4 cards with over 50% utilization for a few months. I am not concerned with any FICO score decrease I would suffer for this short time. I am however a bit worried about possible AAs from my CC companies when/if they notice this new higher utilization of CCs during these shaky financial times.

My question to you guys is have any of you had serious CLD or APR increases recently from any of the companies mentioned above?  Anyone see any other problems with my plan?

I do realize I will not be able to use any of these cards for any purchases util these balances are paid off. I have several no balance cards I could use in emergencies but plan no major purchases in the coming year.

---

The only thing i can say is WOW....You've got Balls of Steel if you can pull this thing off. I wish you luck, oh and you are correct on your math also. I hope it works for you if you can pull it off.

[Anonymous]

Thanks a lot for your good wishes 74king.

I've received a lot of good advice and good ideas here. I think I'm going to sleep on it.

Message Edited by VEEnVEGAS on 04-15-2009 08:51 PM