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Smartpants, Accountant
Category: Finance
Satisfied Customers: 28
Experience:  Associates Degree, 3.6 GPA
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I just recently paid all my debt (collections, charge offs,

Customer Question

I just recently paid all my debt (collections, charge offs, etc) totaling about 5k with the exception of a repossession that left about 8k charged off that I can not afford to pay in full which is the only option from the creditor; I purchased my home for 88k in 2005 with an interest rate of 8.63% my home is worth about 115k. I currently pay my mortgage of 1k a month, and a personal loan of 8k for 140.00 a month, but within a year I will need a new vehicle; should I consider continuing to pay all my debt for the next 12 months on time, and refinance my home hopefully at a lower rate and payment to purchase a vehicle, or should I do so to get tied in with a new car loan at a high rate because of my repossession?
Submitted: 8 years ago.
Category: Finance
Expert:  Smartpants replied 8 years ago.

I am a little old fashioned so my advise to you is if you are going to refinance your home I would suggestion you pay off your old repossession and your loan before you create new bills. The issue with your current vehicle to repair would probably be much much less than buying a new car. Once you have all your debts paid off while you will breathe easier and be able to buy a car without worrying about past issues and current debt.

I do hope my advise to you is helpful in making a wise decision for your future.

Take Care!!