bank loan credit card consolidation using automobile refinancing to securing good or bad?

[yomikey65]

my local bank wants to refinance my current auto loan from another bank i had and they want to refinace it for its orignal loan amount of 16,000.  I had about 4000 left on auto loan so they want to do a 16K loan leaving 12K available to consolidate credit cards onto to equal the total 16K.  My rate would be 6%  so i would be able to save about 200.00 a month considering the current loan payment and credit cards i would consolidate down from 19.99% to the 6% loan.  however I have concern if i should follow through on this option.  I have one year left on my current auto loan.  by doing this refinancing it would be back to 4 year loan terms.  I would try and put the 200.00 savings a month back into the loan with no prepayment penalities so i could pay the new loan off in 2 years and 4 months.  I dont know if it is a good idea to refinance a loan for 16K again using my auto as security.  if i want to trade in or something within the next 4 years i dont think i could considering the loan to pay off and get titile would now be 16K.  i really need some advise from others out there.  should i take the refinance and lower the credit cards to 6% saving  200.00 a month in current cash payments or should i not take the deal and continue on paying my auto off in a year and then trying to pay down the credit cards at that time.  help me help me.

[Revelate]

If you're planning to keep the car and you have significant credit card debt, trading 19% to 6% smells like victory assuming you don't run up the credit cards again.

Welcome to the forums!

[B335is]

That's a really good deal as long as you don't run up credit card debt.  19% interest rate down to 6% ?!  I'd jump on that in a second.

[user5387]

I would say that eliminating revolving debt dominates other considerations, and this sounds like a really good deal.

But I would recommend no longer using the CCs, if there is any issue with controlling spending.