Financial crew, come here and answer my question :)

Ok, so tell me if this is a good idea or not:

My truck is an 09 DCSB which I bought used about 2 years ago. I currently owe $15,500 @ 1.49% and pay $355/month. I think there are around 40 months left on this.

I have a personal loan from my bank with a balance of $5700 @ 10.75% and pay $240/month. (I bought a jetski last year from an individual, that's where this loan came from)

I have the opportunity to add $5,000 to my auto loan and combine my 2 loans. I would pay off the remaining 700 from my personal bank loan in cash. My new terms would be 36 months @ around 580/month @ 2.49%.

Good idea to refinance and combine both loans? Or should I leave the loans separate?

To me it seems like a good idea, what do you guys think? Money is not tight, but I'm cheap...so i'll save a buck anywhere I can

Here's the pair last summer when I bought the ski:

 

If money is not tight pay that 10%'er off.

Just add up what you'll spend with and without doing it. But, you'll be so UPSIDE down in you're truck (if you do it) you better not crash it or want to trade it in....

Also remember, if money gets tight you can lose the jet ski, can you lose the truck?

 

Hmm interesting...do you really think that I'll be that upside down though, paying 600/month on the loan? the balance should drop pretty quickly and the loan amt is still under the value of the truck.

Also, money isn't "tight" but it also isn't loose enough to pay off the 10% loan in any short amount of time

 

That jetski better be pretty badass to keep with that kind of interest rate. I would sell it.

 

He's right. You'll lose money also. Definitely need to pay off the 10% one asap. Try paying a little more each month to apply to the principle. $50-$100 extra will make a much bigger difference than you think.

 

Like others said pay off the jetski. I made the bad judgement call in purchasing a motorcycle when I was 21. No down and 7% interest. It was okay until the 7% interest was over and shot to 17.9% took five years to pay off and probably invested around 17k on the bike that is now worth 5k if I am lucky. Its only 7 years old too.

If you think about diminishing value, the jetski will lose a lot more value and the more interest you pay towards it, your just losing money instead of saving.

Edit: My calculations: Paying $51 towards interest a month on the jetski, paying $19 towards interest a month on the truck. Combined you would pay $41 dollars towards interest a month. So its seems like not a bad deal. Would your jetski be considered paid off? Or would there still be a lien on the jetski?

 

Yes, the jetski would be considered paid off, it already is considered paid off actually. I have the title in hand for it already since I bought it using a "personal" loan from my bank (that's why there was a 10.75% rate on the loan, its unsecured). To me it seems like a good deal to combine them and pay more than the minimum each month...but I posted here for opinions

 

Shoot if that's the case it seems like a no brainer to me.