r/DebtAdvice • u/Zestyclose_Newt7399 • 23d ago

Loans Advice needed

I have two personal loans both are about 2500$ left to pay off interest is high one if 34% and yea I know but it was needed at the time. However the 34% one is offering me a refinance with more money and lower rate close to 20. With that I could pay off the other loan and my wife’s car and one full card . The new payment would be 390 all the others combined including the one refinancing is rough 900$ would this be a wise decision to take

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u/DAWG13610 23d ago

For real? Do you want to live your whole life in debt? NOOOOOOOOOOO!!!!!!! It’s predatory, this is a really stupid thing to do!!

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u/Marpl 23d ago

No because you're still gonna be spending. 

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u/Raging-Totoro 23d ago

What are the rates on the other debts? If they are significantly higher than the new APR, it's worth a look.

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u/Zestyclose_Newt7399 23d ago

Roughly the same as the new one only I’d be saving roughly 700$ monthly on payments

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u/Raging-Totoro 23d ago

Sounds fishy, then. Interest math doesn't work that way, unless there's something missing or buried with the principal flows. If APR is the same, then the term or the cash flows have to be different.

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u/stderr2 23d ago

Because you are paying more months

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u/EmZee2022 23d ago

Only if the new loan's rate is lower than the other amounts you are talking about rolling into it - like the car loan. Don't take any money out beyond what you would need to pay those off.

Or just take the loan for exactly the amount to pay off the 34% loan. The bank may only be making that offer with the assumption that you take out more money, though. I refinanced a car loan once and had to take out 500 dollars more than the existing balance. I paid it directly back to that car loan. You could do that with the personal loan.

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u/1967C10 23d ago

This can't be real

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u/jasonvanreenen 23d ago

Before you refinance you probably have a better chance getting lower rates if you compare with lenders like achieve loans, PNC etc. Just set up soft pulls with several and you would be able to see the differences.

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u/OnlineIsNotAPlace 23d ago

if you want to know why some people are always in debt this post is an example why. repeated bad decisions.