I'm looking for guidance/suggestions on what (if any) options I may have for this upside down loan. Here's the deal:
- Financed vehicle in April 2014 @ 21%, final payment due Oct 2020
- Current principal balance is $15,520.92
- 10-day payoff is $15,690.18
- Vehicle trade-in value is currently $6,125 (based on truecar.com)
- Private sale value is $7,075 (based on truecar.com)
Here's my situation:
1. I have my annual bonus coming up in March which will provide an extra ~$8,000 in cash to use towards debt
2. I have a credit card balance transfer offer from NFCU @ 1.99% interest BUT it must be paid off 12 months to avoid remaining balance being charged a rate of 14.99% (limit is $15K)
3. I may be able to qualify for a personal loan at a lower rate but that's a big maybe. My luck hasn't been great in that space so far.
Should I continue paying the loan off at the current payment schedule? Is there any benefit to paying the loan off this late in its life? Do I apply the bonus cash towards the loan balance? A balance transfer doesn't feel like the right/responsible move to make but I wanted to kick the tires on the option.
Any help this group can provide would be appreciated- thanks!
I am trying to figure out the loan.
Was it about 38K @21% for 6.5 years mwith a payment of about $890?
You still are paying a lot of interest on the car loan.
Based on my guesses above and an amortization table your January payment would have been $282.24 in interest.
if those numbers above are correct then this is what I would do.
I've paid $36,288 so far and the monthly payment amount if $647.40. The remaining balance is $15,699.09. You're correct that the interest rate is a little over 21%.
I understand the above information may change things a bit but I want to thank you for the information you provided in your response. Assuming most of that will still hold true, I hadn't considered refinancing. I actually thought it was completely out of the question due to the vehicle's age.
First off what year is the car and how many miles.
If it was purchased new it's what 5 years old you should be able to refinance but if it has too many miles it could be a problem. For gigles just chat with DCU or another credit union there is a chat option on the car loans page and ask them if your car qualifies. You will have to have it paid below 120% LTV using NADA book to get refinanced though.
Something still does't add up.
You added more pieces to the puzzle so I think I got it right now:
6.5 year loan
last payment 10/2020
Loan amount around $27,500
I am spelling that out because I am not seeing the same payoff amount that you are.
Looking at an amortization tabel if those are the numbers above then you should owe $11,295.39 after the January 2019 payment.
Download an amortization table for Excel like this one http://www.vertex42.com/ExcelTemplates/loan-amortization-schedule.html
Why do you owe $4,300 more?
Did you defer payments? Are the late fees or something else added in?