Is it possible to merge an auto loan and a new one?

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In the case of auto loans you might be able to combine the balances from multiple loans into one payment. This is known as debt consolidation. Another way to combine loan balances is to do it in another manner.

Debt merger: debt consolidation

Revolving credit like credit cards is more popular for debt consolidation. Consolidating other types of debt like mortgages or car loans is possible, click here to view: https://consolidationnow.com

Take, for example:

You can qualify for a consolidation loan if you have two car loans with balances of $ 5,000 and $ 6,500. The debts will be combined into one loan of $ 11,500. These contracts are ended when the two auto loans are paid off with the $ 11,500 loan. The new loan is a single lender and you will now only have one monthly car payment.

Consolidating auto loan debt is similar to refinancing. You replace one loan with another in the hopes of getting a better deal and a lower monthly payment. This isn’t a common practice.

Refinancing requirements are similar to refinancing. The lender you apply for the debt consolidation loan may ask that you have equity in your vehicle and that you have good credit.

To consolidate your debt, you will need to visit a direct lender such as a bank or credit union. You can also shop around with different lenders to find out what rates may be available for your credit situation.

Debt Merger Benefits

Consolidating debt is a common practice among borrowers. It can make it easier to manage your debt and allow you to pay a lower monthly payment. Combining the debts can reduce the risk of it falling through the cracks.

If done properly, debt consolidation can also help you save money on interest. Compare the rates of your current auto loans and debt consolidation lenders as you evaluate your purchases. To find out if the auto loan consolidation will cost you more or less, average your interest rates.

Another way to merge loans

Consolidating your auto loans while keeping both vehicles is one option. However, you can also merge your auto loan balances in another way. Negative equity is a situation in which you owe more than the vehicle’s value. You may be able sell your vehicle and transfer its negative equity to your next auto loan.

This is called roll-on negative equity. This option is for borrowers who wish to sell their vehicle, but are unable to get a fair offer to repay their loan.

Rolling over negative equity can be risky as you may end up with a high loan balance for your next car loan. Bad credit can lead to higher payments for your next vehicle.

Do you want to find something with poor credit?

Let us assist you if you have bad credit and need a car loan.Auto Express Credit. Since over two decades, we have been connecting bad credit borrowers with dealers registered with subprime lender. These lenders can handle any credit situation. We will search for a dealer near you by completing our auto loan application.

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