16.4% APR $5,000 Auto Loan...HELP!

Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:

DEAR LoanResources.Net:

I was very impressed with your article entitled "8 Point Checklist, Evaluating Online Lenders."

I have tried several sources to refinance my auto. I only have 2 more years to pay $245.04 a month. I owe 4,414.00 on the car loan.

This may not seem like a lot of money but I would like a lower interest rate on my car loan which is now $16.4% APR.

I want to still pay it off in 24 months but at a lower rate so that I can use the money saved to help pay off other bills.

In my internet searches, the auto refinance loans required that you borrow more money than I need. I tried to search for unsecured personal loans on your website and they also required that I borrow more money.

I have a very good credit record and I am working to get some of my bills paid off.

Is there anything you can suggest so that I can get a lower rate auto loan for under $5,000? Any assistance will be appreciated.

Thanks. Geraldine W.

DEAR Geraldine:

Sorry I have not gotten back to you sooner. I took a couple weeks off to be with family...Thanks for the compliment on the article!

Anyway, I read your email and I do indeed have a suggestion or two that I'm happy to share.

A COUPLE THINGS INITIALLY:

1. First, you're paying a very high interest rate at 16.4% APR for an auto loan! I'm going to assume that your statement as to your good credit is accurate. If that's true, then you do indeed need to fix this.

2. Since you only need $5000, with the intention of paying it off in 2 years or less, I don't think you should look for a refinance auto loan or a refinance on your home. Indeed, the bank is going to want to loan you much more money, usually at least $25,000. While a refinance or equity loan on your home does offer tax benefits, we're only talking about interest on $5,000 over the course of 2 years. I have another idea you may not have considered.

HAVE YOU CONSIDERED?

Have you considered just putting the balance of your car loan on a credit card that has a lower interest rate?

1. Credit Cards are, indeed, unsecured lines of credit with financial institutions.

2. They are the perfect financial vehicle for a $5,000 transfer of debt, with added flexibility, and you should be able to find an interest rate between 9 to 11%, and better, on average.

3. IN ADDITION! Once approved, the bank will usually give you blank checks for balance transfers (sometimes they'll just do it for you right over the phone)...,

4. AND GUESS WHAT? The majority of the time, the incentive interest rates on the balance transfers are EXTREMELY low; sometimes zero percent for up to 6 months to a year.

5. IN ADDITION! you can apply for incentive cards that provide rewards for your spending....free airline miles, cash back programs, etc. I use the American Express Blue, and I get cash back of up to 3% on everything I spend. So, for $5,000, 3% cash back, AMEX? pays me $150.

How do you like them apples? The bank pays YOU to borrow money.

RECOMMENDED PLAN OF ACTION:

So, Geraldine, here's what I recommend you do:

1. Go back to our website, and explore the credit card offers we've recommended. We've picked out what we think are the best offers, and there are a LOT of them, so think of it as a much needed shopping trip! Pay particular attention to our links for "incentive cards". We have two pages of them.

2. Apply for whatever card or cards suit your tastes and needs. There are so many great reward cards. Limit yourself to only your imagination.

3. Get approved, receive card, and receive balance transfer checks.

4. Pay off loan to 16.4% bank!

5. Pay off credit card loan (with extremely low rate and incentives), at your leisure!

?And enjoy the fact that you just made an excellent financial move, saved money, made money, and gave yourself the flexibility to manage your debt on your own schedule...

Hope this helps...Let me know how it all works out.

We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

Publisher's Directions:

This article may be freely distributed so long as the copyright, author's information, disclaimer, and an active link (where possible) are included.

Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Copyright 2005, by LoanResources.Org , This article is available in full format at: Auto Loan Help , Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services.

---

Alternatives to Filing Bankruptcy

Deciding to file for bankruptcy is a decision that should... Read More

Debt Consolidation - Is It Really The Best Option For You?

It is a very common question that people pose to... Read More

Debt Consolidation Loan and Consolidation Loans

Debt consolidation loan services act as a third party intermediary... Read More

Finding a Low Interest Debt Consolidation Loan

If you are in the market for a low interest... Read More

Thinking Beyond Debt Consolidation Loans

Planning to devise a permanent solution to the problems of... Read More

Debt Consolidation: How it Works

As long as consumerism flourishes most of us will be... Read More

Finding the Consolidation Loans that You Need

Consolidation loans can be very useful in a number of... Read More

Debt Management - How a Debt Consolidator Can Reduce Your Debt

A Debt consolidation program starts with evaluating your financial situation.... Read More

Debt Consolidation when You Find Yourself Overwhelmed with Bills, Bills, and More Bills

Many of us find ourselves overwhelmed with bills, bills, bills.... Read More

Shocking Facts - What Debt Settlement Companies Dont Tell You

If you're thinking about using a debt consolidation or debt... Read More

Is There Something Called a Bad Credit Credit Card?

Is there something out there called a bad credit credit... Read More

Reducing Credit Card Debt

One of the easiest "things" that can happen in life... Read More

Student Loan Consolidation

Student loan consolidation is one of the most used methods... Read More

How To Get Rid Of Debt Problems Step 1 -- How To Deal With Your Creditors

However far you are along the road of financial/debt problems,... Read More

How To Get Rid Of Debt Problems Step 4 -- How To Get Interest On Your Debts Frozen

The first thing to understand is that there is categorically... Read More

Shake off the Chains: Credit Card Debt Elimination is Easier Than You Think!

Feeling like you're on the brink of financial disaster? You're... Read More

Re-Mortgages ? There?s Help For Bad Credit Ratings On The Way

As any report on the subject will reveal, million of... Read More

Pay Off Debt - Get Out Of Debt And Lower Your Monthly Payments

Debt consolidation can be confusing, especially if you have never... Read More

Before Considering Debt Consolidation

If you believe in the good in people then you... Read More

Debt Consolidation Solutions

Millions of Americans are finding it hard to pay their... Read More

Guide to Debt Consolidation Loans

Here is a useful guide to Debt Consolidation Loans. A... Read More

Finding a Reputable Debt Consolidation Company

If you are looking for a company that will help... Read More

Consolidate Debt to Help Get You Out of the Quagmire

Will you agree with me if I tell you that,... Read More

Getting a Better Consolidation Loan Secured

If you're looking for the best way to reduce the... Read More

What You Need to Know About Debt Consolidation Loans UK

Should you find yourself over your head in debt, you... Read More

Debt Relief From Debt Consolidation

If you are up to your neck in debt, there... Read More

Why Choose a Debt Consolidation Loan?

Are you wondering why choose a debt consolidation loan? If... Read More

Debt Consolidation ? Discipline is Required if Consolidating with Home Equity

Debt consolidation is a popular topic these days. The average... Read More

Reducing Debt Through Lower Interest Loans

It happens to the majority of us, credit card debt... Read More

Debt Consolidation: Why And How This Strategy Often Backfires!

Debt consolidation solutions, has found that as good as it... Read More

Avoid Bankruptcy

The first but definitely not the easiest thought that comes... Read More

How To Get Rid Of Debt Problems Step 2 -- How To Prepare A Financial Statement

Here is how to prepare a financial statement, for the... Read More

Cutting Your Monthly Outgoing With Debt Consolidation

With consumer debt on the rise, many people have found... Read More