I bought a 2006 Nissan Titan back in May of last year and owe roughly $16,500. on it with 5 years remaining at an interest rate of 9%. I called in to see about a refi to a lower rate, and I was offered a refinance with cash out to pay off my credit cards. I have about $11,000.00 in CC debt and I was offered a refinance for $26,500.00 which would allow me to pay off the majority of my credit cards which I no longer use. The interest rate would jump on the truck loan to 15.5% for 72 months, but it is a lower interest rate than that on the credit cards. My new payment would be $579.00 up from $349.00, but I would be eliminating $300.00+ in minimum credit card payments each month.
Does anyone have any suggestions here. The truck is worth the $26,500 I am being offered and I know it would also improve my FICO score by not having so much revolving debt.
Any major drawbacks here or things I need to know before going through with this. Any advice would be greatly appreciated.
Rob