No. of Recommendations: 0
Here's our situation.

We have about $12,500 in high interest credit card debt.

We also have a 3 year "new" Honda Civic that's paid off.

Our credit union offers used auto loans at 9.0%.

Would it be a good idea to get a loan on the Honda Civic in order to pay off the credit cards? For a 60 month loan the payments would work out to about $265 a month. We're currently paying more than that each month towards the credit cards, but they're not going away quickly enough (due to the high interest rates). We haven't charged any new items on the cards in the past year. We're currently living below our means, but I'm getting sick of seeing how much we're paying in interest.

Will banks do this? Let you "buy" the car from yourself in order to take a loan out on it.

We'd be determined to pay it off sooner than 60 months, but we do want to have the flexibility to make a small minimum payment should an emergency come up.

Let me know what you think. Thanks in advance.

-derek51
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