right now i'm paying for a new car. The original amount financed is around 14k april of 2007 and i have it down to 11 as of dec 07. I am paying double my required amount and i'm thinking because of the 7% simple interest i have, i feel like i'm not getting very far on this. Right now i'm thinking of having BofA or maybe a credit union take over my balance and get a lower interest rate? what do you guys think is the best move?
2007-12-26 13:40:02 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
If you can get a better interest rate it would be a good idea. When you say you are making double payments, if you are not writing a separate check and stating "principal only" on it then you are not paying down the principal, only making payments in advance. Check to see if it is being applied to the principal, because that is what you want to happen.
2007-12-26 15:20:04 · answer #1 · answered by Bette 5 · 0⤊ 0⤋
My thoughts are, you already have a good interest rate for a car. You could benefit by doing a credit card balance transfer. However, you really need to be careful. You can get zero percent for the first year, and then end up with 12%, after the first year.
Also, are you sure, you are benefitting by making double payments? You may not be. It depends on the terms of the note. You may not be paying down the principle. You may just be making payments in advance.
2007-12-26 13:57:26 · answer #2 · answered by Larry 4 · 0⤊ 0⤋
It all depends on the interest rate they can offer. If you can find something lower I'd go for it and still pay the same amount you're paying now in order to knock it out!
2007-12-26 13:47:11 · answer #3 · answered by lilmissqtpye 2 · 0⤊ 0⤋