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  1. #1
    I hope this doesn't come across as spam or anything, but I've worked at a credit union for over 8 years and thought this might help those with credit card debt they're trying to pay off. Not everyone is going to be able to do it, but for those that can, it could save thousands of dollars in interest.

    The short and simple of it is to use vehicle equity to pay off your credit cards. So someone with $10K in CC debt @ 15% but owns their car free and clear or has a low amount left on their loan, they can transfer most, if not all, of their debt onto the car loan which should be a MUCH lower rate than the CC's. You don't OWE less, but you will pay less in the long run. At the credit union, a 680 or higher would get 2.7%. Heck, a 600 got you 6.5%. So if you've got decent credit, and you're looking for alternative ways of getting rid of the CC debt, Consider using that strategy. Hope this helps in some way. This is the link for the video I made about it.

  2. #2

    For those who have credit card debt, and own cars, this might help you.

    I don't think it is a good idea because you would be turning unsecured debt into secured debt and could lose your car which could have then have the domino effect of costing you your job because you can't get to work.

  3. #3
    This is exactly what I was going to say. This is an awful idea.

    In addition to what AJ444 mentioned, what happens when you use your car's equity to pay off your credit card and then total your car? The insurance is only going to pay what the car is worth (minus your deductible). They won't care how much you owe. If there's a gap, you're out of luck, plus you'll have no money to put toward a new car.

  4. #4
    IF you have credit card debt, budget, pay yourself first, then take every extra penny you can and pay them down.

    Sadly there are not easy answers, Live below your means and tackle High interest loans like they are a robbing you blind, because they are.

    just my 2 cents. I'll have to charge interest on my next 2 cents

  5. #5
    The credit card belongs to another financial institution so your credit union has trained you to offer car loans to individuals in order to make money off their cc debt?

    Are there other ways a credit union could help - HELOC? Personal Loan?

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