Question

Debt question: my husband and I plan on using our tax refund to significantly reduce the money owed on his truck. After that, we will have about $5000 left to pay on it. Currently, the interest rate is 7. 5 at the current bank we are using. We can qualify for a personal loan with a much lower interest rate at another credit union to pay off the remaining $5, 000. Is this a wise decision? Has anyone done something similar in order to obtain a lower interest rate?  

Answer 1

Personally, I would do it. I’ve take a loan with my credit union and used it to pay off a higher interest card, then I just owed that amount the the bank. So, if I were you I would take out the $5, 000 loan with them and throw it and your refund at the car. Then you no longer have to deal with the car company, just the bank.  

Comments

Either way you still owe the money, it all just depends on how fast you can pay it off to avoid the interest.