Debt Relief & Management Tips : How to Consolidate Car Loans
Hi my name is Maria Enomoto from Consumer
Counseling Service, and we’re going to be talking about how to consolidate car loans.
Now if you have a car loan, one only and you are not happy enough with the terms that you
have or you are thinking of getting probably a lower interest rate or a better payment.
What you can apply for it’s to do a refinancing on that car. OK. You can talk to your current
creditor and see if there’s any way how you can re-work this terms with them or you can
apply to another credit institution just to see if you can get a loan and pay off the
balance, but on the first one and the current one that you’re going to have is going to
have is going to have better terms. If you have several car loans, you probably will
need to work it out with each of the creditors that you have. Or you can apply for one big
loan. Say for example a personal loan through your bank, your credit union, any financial
institution that you work with. And for the amount it will pay enough the balances on
this car loans. And you will have consolidated them because now you’re going to stick only
with one payment with one creditor and and and that’s the way that you are going to be
working out the consolidation for your car loans. Usually you should consider refinancing
or a consolidation if you know that you are going to be getting better terms out of this
refinancing or consolidation program. The better terms it’s having a lower rate, having
a better payment. But sometimes it’s not we don’t recommend this because a car is an asset
that is going to be losing value through the time. So basically you’re going to be paying
more than the asset that you are going to be having by the end of this loan. So if you’re
thinking about refinancing, I will suggest it’s because of the terms. You have a lower
rate. You have a better payment, but avoid extending the time so long because actually
the car can cost you more by the end.