Household Auto Finance

I financed a car at 19.95% because of bad credit. Approximately 5 months later, I received an offer refinancing with 16.95% Capital One, so I did. I just received another offer to refinance again with households Auto Financing 12.95%. Should I refinance again? Will it hurt my credit?

This is only the means to pay more to get t all details about the duration of payments and other things are before making a decsions and I would just cancel all my credit cards when I am in dept So if you>

Auto refinance makes sense for many people who are paying interest of more than 10%. If you pay high interest, and you have been making your payments on time, then you're an ideal candidate to reduce your car payment by refinancing. Check www.autorefinancereview.com for more info. Report Abuse

It is always preferable to finance at a lower rate.
Here's an online calculator Amortization see how much money you earn.
http://ray.met.fsu.edu/cgi-bin/amortize

The smart thing to do would be to finance the lower rate, but to continue sending the bank the same amount each month. It will just get your debt paid quickly.

Example. If you currently $ 5000 to 19.95% for 4 years, your monthly payment is $ 152. Ultimately you pay $ 2,300 in interest alone.

If you refinance even $ 5,000, to 12.95% for 4 years, your monthly payment is $ 134. and you pay $ 1,400 in interest return.

BUT if you refinanced $ 5000 to 12.95% and continue to send the amount of your payment of $ 152 per month - you only pay $ 1,200 in interest and paid in 3.5 years.

When it comes to debt, you need to be smart. Do not refinance to procrastinate for another year. Be strong and repay it quickly.