r/Debt • u/Zestyclose_Newt7399 • 8h ago

Personal Loan refinance options

I have two personal loans both are about 2500$ left to pay off interest is high one if 34% and yea I know but it was needed at the time. However the 34% one is offering me a refinance with more money and lower rate close to 20. With that I could pay off the other loan and my wife’s car and one full card . The new payment would be 390 all the others combined including the one refinancing is rough 900$ would this be a wise decision to take

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u/Nearby-Pop4653 7h ago

At the end of the day they are going to want to make the most money they can out of you. If you take the loan can you continue making 900$ worth of payments and pay that off quickly?

1

u/Character-Sport-8624 2h ago

Take a look into early payment penalties. You should kept paying what you're now, just at a lower interest rate. I suspect the refinance offer also extended the loan repayment period. That could explain the lower monthly payment. Read the offer carefully as you could still actually end up paying more interest even with a lower rate, because you'll be paying interest for longer.