My question is this: my husband and I have been married for a little over two years. He's in the military, and we're trying to pay off our debt creatively with our very meager budget. One thing he wants me to check into is vehicle refinancing, and neither of us are sure as to when, if at all, it would be advantageous. Our current scenario is that we owe $1399.32 for three more years at 12.99% (it was his first auto loan). The vehicle is worth about what we owe. Should we try to refinance? Thank you so much!

How could it possibly take you three years to pay off $1399.32?
That’s a typo, right?

If you can refinance to a lower interest rate, I would always do that to save money.

For the purposes of illustration, I’m going to assume your outstanding loan is for $13,900. At 12.99%, you’ll pay just over $2,900 in interest. If you get your interest rate reduced to 11%, your interest costs drop to $2360.

So, how hard are your prepared to work to save $540 in interest?

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