Much better

I checked off one of my goals. I've refinanced my auto loan.

My previous auto loan had an interest rate of 14%, which was killing me. My monthly payments were $308 (for a 5 year loan), and too much of that was just interest.

Here's what I did. USAA would give me a loan for 6.434%, A huge improvement. But, they wouldn't cover the whole amount, since I owe more than the car is worth. But, they were willing to extend a personal loan for the remainder (at 12% interest).

I know what you're thinking. "Aren't you just getting further into debt?". Here's how bad my rate was. The monthly payment for the personal loan AND the new auto loan are still less than my current auto loan, and the total interest paid is much lower.

Not only that, but I'm reenlisting very soon, and I plan to use that money to pay off the two personal loans. That means that I won't be paying most of the larger interest bearing loan, and my auto loan payments go to about $190 for a 4 year plan. That's one year less at minimum payments, and I'm still saving a huge amount of money.

So, this adjusts my amounts owed. This will be reflected at the beginning of next month.

Also, this highlights the importance of READING WHAT YOU SIGN! When I received the documents to sign, I noticed that the interest rate was 7.434%. They had failed to include the 1% discount for applying online. I called them, and requested they change it. That extra 5 minutes to call and check saved me a good amount of money.