sierra financial solutions? way to go?

[Metric6]

Yeah, I know the car payment is one among many large payments. The thing is is that I have kept it in excellent shape as far as maintenance. My warranty is good up to 100,000 miles and it covers virtually everything. I am half way through paying it off, it is reliable, and it gets me through the winter snow. I know I could save $$, but I feel like selling that for something that could potentially break down and not be covered by a warranty could potentially negate any money saved by getting rid of my existing car.

[kork13]

Originally Posted by Metric6

Yeah, I know the car payment is one among many large payments. The thing is is that I have kept it in excellent shape as far as maintenance. My warranty is good up to 100,000 miles and it covers virtually everything. I am half way through paying it off, it is reliable, and it gets me through the winter snow. I know I could save $$, but I feel like selling that for something that could potentially break down and not be covered by a warranty could potentially negate any money saved by getting rid of my existing car.

I'm glad you at least have a good warranty on a good car, and take care of it... So many people don't care for their cars and it's a shame. So we'll just assume you need to keep the car. What is it, just out of curiosity? How long does that model tend to last (driving it into the ground)?

You haven't given details on your car loan (date of initiation, initial amount, rate, term, current balance), so i made some assumptions... 2.5 years ago (said you're half-way through), $20k (why not?), 9% (bad credit), 5 years (normal), and $10.8k currently (through an amortization table). I understand that this may not be exactly correct, but my recommendation below is still valid even if I'm off.

Given all of that, my recommendation would be to try to refinance your loan. It might be hard to find someone who will do it for you given your current debt level, but try local credit unions or banks, online, etc. Find SOMEONE who will refinance for you. Even if you refinance for the same $10.8k @ 9% for 2.5 years, your payment will go down by about $15/mo. If you can refinance to $10.8k @ 8% for 3 years (3yr term is more common), your payment would be only about $340/mo. If you can get an even lower rate, your payment will go down even further.

Basically, you need to try to refinance your car to a lower rate if at all possible. Even a small decrease will help. Also, a slight extention on your remaining term from 2.5 years to 3 years will also reduce your payments further, without costing you significantly more interest. Doing this will give you a bit more each month that you can plow into your credit card debt. I know this isn't the best answer, but it's doable and it will help.

[Metric6]

Originally Posted by kork13

I'm glad you at least have a good warranty on a good car, and take care of it... So many people don't care for their cars and it's a shame. So we'll just assume you need to keep the car. What is it, just out of curiosity? How long does that model tend to last (driving it into the ground)?

You haven't given details on your car loan (date of initiation, initial amount, rate, term, current balance), so i made some assumptions... 2.5 years ago (said you're half-way through), $20k (why not?), 9% (bad credit), 5 years (normal), and $10.8k currently (through an amortization table). I understand that this may not be exactly correct, but my recommendation below is still valid even if I'm off.

It is a Nissan Xterra 2006. I hope it lasts a long time, but the 2nd gens (2005-present) aren't old enough yet to really tell for sure. I know my friends dad has a 1st gen and it has close to 200,000 miles on it. All he has ever done is changed the oil and it still runs perfectly. no problems at all.

I have a 5 year loan and half of it is paid off. I still owe about 13K on it.

[albertknowles09]

hey dude,
it is good that you are seeming to get out from debt quickly, just plan your debt as your income and look for anymore debt.

[devid fox]

Originally Posted by Metric6

It is a Nissan Xterra 2006. I hope it lasts a long time, but the 2nd gens (2005-present) aren't old enough yet to really tell for sure. I know my friends dad has a 1st gen and it has close to 200,000 miles on it. All he has ever done is changed the oil and it still runs perfectly. no problems at all.

I have a 5 year loan and half of it is paid off. I still owe about 13K on it.

It's good that you have a good car that satisfy you I hope. You do not wish to sell the car for tackling the unwanted circumstanced you are in. I appreciate you decision. I am keen to more about the type of your lone if you don't bother.

[Radiance]

Kork13 has the right answer!
It is not a scam, but it is also not needed, you can do it on your own, I did it!
Also helped that I got a regular personal loan to consolidate debt from my credit union. That would be your step 3a!
I also dedicated every tax return and work bonus to pay off debt.