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I am actually trying to get OUT of debt, however, this is a challenge for me because I currently have a combined debt (including car note) of about $20K.

I am in need of a new car and will need to get one by August of this year, when the warantee on my current car runs out.

As I mentioned to another poster (who also suggested I post this message here), My current car is 8 years old and is starting to "act up" and I am not comfortable driving a car without a warantee.

I just don't feel it's worth it to pay an extra $2500 for a warrantee on a car this old with almost 85K miles on it.

If I'm being irrational, please let me know.


Anyhoo, I am considering taking out a loan to pay off all the credit card debt which is about $14K of the combined debt, so that I can have only one payment a month with a lower interest rate.

However, my credit history is good (no late payments and nothing in default) but my credit scores are low because I am currently using up to 95% of my available credit on all of my lines.

I am afraid to apply for the loan because:

1. I don't think the bank will give me that much money

2. I don't want the inquiry on my credit report if I am denied

3. I have a feeling that if I take out this loan, it will be very difficult to get financing for a new vehicle.



I live in a D rated region, so I don't make the money I was making when I lived in NY. My current income is only $38K.

I need some advice on what to do. Please help!
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