It's not a popular option, but you could ask for a loan from your parents or other family members if they have extra free resources cash wise.
If I ever get truly stuck, I'll wind up using this option with my dad; if you think you might have this ability, check the IRS rules for a 5-8 year mid-term loan, and the APR would be somewhere around edit: 1.24% currently. They publish it online monthly, at some percentage above the treasury rate.
All I can say is put it in writing, and absolutely pay it if you choose this route, because sacrificing family relationships over this isn't worth it. It does however get you refinanced, and out from under the current car payment, and your auto loan will be considered paid in full at least.
@Booner72 wrote:WHAT is an IRS mid-term loan? thanks.
The IRS breaks down the Applicable Federal Rate into a few term categories:
- Short-term, loans of 3 years or less
- Mid-term, over 3 years but not over 9 years
- Long-term, over 9 years
The AFR is pretty much the structured rate defined by the Federal government, anything below that rate in terms of a family loan is considered a "below market rate" loan and can lead to some ugly stuff.
That said though, I was way off in what I remembered: the current mid-term adjusted AFR is only 1.24%. Think I was looking at the long term category sometime last year from what I posted above, but this rate sheet is what governs family loan minimum interest rates if you don't want the IRS to start levying penalties.
The rates are all published here: http://www.irs.gov/app/picklist/list/federalRates.html
It's probalby best to throw in a bit more anyway from a loan in the OP's case, but even prime rate is only like 3.25% these days. If you or anyone else does go the family loan route, look up some various details as well to make sure you have it structured right, but FWIW in the OP's case, a 8k loan will probably never run afoul of the IRS since it's below the maximum annual gift amount anyway (13k), but it's far better for everyone involved to do things correctly anyway. For that matter, I think the family loan can even be structured to be secured against your car if you really wanted to be formal about it. Might make a difference in pitching it to a family member, might not,.
thank guys I let u know what happens...
Starting Score: Ex: 580 EQ: 608 myfico TU: 585