We're at the end of B's car lease and were required to pay a $15000 residual balloon payment on the car, which is due on the 5th August. We don't have that much money available so need to refinance.
I did a bit of research on the best loan interest rate and found 8.5%.
He got a phone call from the finance company asking what he wanted to do with the car and then a letter. As he is pretty busy with work and I handle the financial side of things I called the company back.
They said their current rate is 7.99% so I am happy with that. It will be a 2 year loan term and will come to around $750 per month. We currently pay $926 per month so I will put the difference towards his credit card debt.
While he had the business it was pretty much always maxed out. I'd make inroads into paying it down and then he'd get short paid and need to use the card to get by, it was a never ending cycle. Now he is an employee like me he barely uses it so I think if we pay the amount we've saved ($150-$175) onto that card it will be paid off around the same time the car is paid off. Exciting stuff .
His motorbike loan will be paid off in the February of 2 years time and then the car and credit card will be paid off in the August.
We will have a spare $1200 per month then, which is very exciting. (I'm a bit scared to say too much more, plan too much more, in case things get jinxed).
I have to send some signed documents back before they draw up the actual contract. They say approval should happen tomorrow and all paperwork finalised next week, so it's all going to be cutting it fine.
Refinancing B's Car
July 20th, 2016 at 08:50 am
July 20th, 2016 at 02:30 pm 1469021440
July 21st, 2016 at 08:52 am 1469087572
July 21st, 2016 at 12:01 pm 1469098897
July 21st, 2016 at 11:13 pm 1469139185