Consolidating two car loans
Consolidation works best when your ultimate goal is to become debt-free.
This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.
Under Chapter 13, the borrower would continue to pay off some of his or her debts in a reorganization, or restructuring, of what he or she owes, says Gallegos.
The borrower would repay the car loan debt as part of the repayment plan, but the total amount repaid would depend on how old the car loan is, he says.
But if you’re struggling to balance your debt repayments, debt consolidation may well be worth considering.
*Fixed annual interest rates range from 10.95% to 17.95% on terms from a minimum of 1 year to a maximum of 5 years.
The actual interest rate charged to you will depend on your personal circumstances.
If you're considering bankruptcy, it can be hard to decide what to do with your car loan.
You may have difficulty paying all your debts, but at the same time, you want to keep your vehicle.