Consolidating multiple car loans into one

One common way to do this is to take out a debt consolidation loan.

Here, you take out a term loan in the amount of your total debt, which you use to pay off your lenders.

If you reduce the number of payments you need to make every month, you are also likely to have lower payment-related expenses.

When you pay down or pay-off some of your other debt with the cash back money you get from Road Loans, you may be able to lower your overall monthly payments.The lender thinks it has a lien on a car that at one point was worth more than ,000 but finds out — should you default or the new car is totalled in an accident — that it holds an interest in a car that isn’t worth what you (and the dealer) said it was.In other words the collateral for the ,000 loan is a ,000 car.The lender has extended you the credit to buy one car for a certain amount of money.Imagine the trouble that could ensue if you buy a car for ,000 and, without the approval of the lender, find a way to use the rest of the loan funds to pay off the other car.Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.

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