Is 19% interest too much still?

Question

im 20, my van interest is 29%.. i had it for about a year now... i just got approved for a new vehicle with my van as a trade in.. my new interest would be 16%.... plus what i owe onm the van... is it a good decision to go for it.. or should i keep cramping my style with my mini van?

Answer 1

To be honest, you need to stop borrowing money, if that's  the best you can do.  If you were a milllionaire, then you coudl afford to pay 29% interest. I take it you're not.

I would save up $1000, sell the van, get out of debt, and buy a beater for CASH at 0% interest.  Then you can start working on making yourself successful instead of whoever the rich guy is that's standing on your back.

When it comes to finances, you need to think of yourself first.  If you don't think of paying yourself, nobody else will.

Answer 2

whaaaaaaaat...your credit must be down the drain!!! 29% for a car loan!? and 16% sounds good to you? wow! I've seen people with very very little credit history get a 11% interest rate on big expenses. 29% is just too much though.

Whether or not you trade in the car is up to you. Can you afford to make more payments? do you need a new car? is your van running fine? there's a lot of things you need to ask yourself. But in the end, its up to you. Don't just go buy the interest rate. But then again if my interest was 29% id jump on 16% in no time.

Answer 3

If you can afford the new vehicle payments then go for it. I would try to shop around for a better rate. If you got this rate from say Capital One by doing the application on-line, or one of those "pre-approved" mailers, then I would have the dealer where you are getting you new vehicle from try to get you a better rate. (Cap One and all of those companies give really high rates to anybody who does those on-line applications) Or try going to your bank to see if they'll give you a lower rate.

Answer 4

too high! anything under 11 is better!

Answer 5

Both of those interest rates are absolutely terrible. You must have shittacular credit. Get a co-signer for god's sake.