Advice from Nashville's Financial Guru Dave Ramsey
Dave Says
By Dave Ramsey
Author of Financial Peace and The Total Money Makeover
10/2/2005
"Can you refinance a car payment?"
Dear Dave,
We have a ’97 Taurus that we bought on a whim, and it came with a high interest rate because we fell behind on some medical payments before we bought the car. Right now, we owe about $1,700 on it. We’ve also got an SUV that needs repairs to make it drivable, and we still owe money on that one, too. I know you can refinance a loan on a house, but can you do the same thing with a car?
- Cheryl
Dear Cheryl,
You can if you’re able to find someone who’ll give you the loan. It’s not going to make any difference if you haven’t cleaned up your credit since then, but if you have and you’ve got a credit union or someone who is willing to give you a lower rate, I’d go for it.
But let’s get ourselves into high gear and get both of these vehicles paid off. Get the necessary repairs made to the SUV and sell it. It’s sitting there in the driveway, you can’t drive it and you’re still making payments on the thing.
Get in attack mode and clean up this mess. It won’t take long, Cheryl. You just need to take action. And next time you get car fever don’t go to a car lot – take a cold shower instead.
- Dave
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