Consolidating two auto loans

If a lender starts talking about things like processing fees, administrative fees or eliminating your debt altogether, Forbes warns, it’s a solid red flag that they’re trying to scam you.

Many people pay hundreds of dollars each month on college loan repayments.But, as Mark Kantrowitz warns on USA TODAY, “variable rates have nowhere to go but up.” If you sign up for that low, low rate now, you risk committing yourself to rising rates for years to come. Typical student loan repayment terms range from 5 to 20 years.By extending the repayment term, you can significantly reduce the amount of money you’re required to pay each month.If you’re on a tight budget, this can provide you with the extra breathing room you need to pursue other important financial goals, like building your emergency fund. Some consolidation plans offer flexible repayment terms.These include plans that base your monthly payments on your current income, and plans where your payments gradually increase over a period of time.

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If you extend your repayment terms from 10 years to 20 years in order to get a lower monthly payment, you can wind up paying tens of thousands of extra dollars in interest over that longer time period. Depending on the lender that you select, you may or may not be charged an origination fee of anywhere up to 2 percent.

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