Many people think of a car loan as debt.  Well this time it’s a way to transfer debt and pay it off faster at a lower rate. With car loan refinancing you can free up cash to go directly to a higher interest debt and pay it off faster with a required additional payment.

I always had a hard time putting extra money towards debt.  If it’s available, and not allocated to a particular bill then it’s always easy to find an expense, even a true need and spend it.  When i refinanced my car i was able to pay down a chunk of my 2nd mortgage and transfer it to a car loan at 3% lower interest.  I’m basically paying down my mortgage an extra 300 a month now with two car payments.

Don’t forget to re-structure you budget to allow for the monthly payment.  Once that is done you will have a lower debt, be it mortgage or scary CC, and you will have a required extra payment on a lower interest loan.  If you plan it correctly it will help you get out of debt quicker.