Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

csmithballsout asked:


I wanted to know if I would have any problems trading in my car for one with a lower monthly payment. My payment is $350 now and I would be looking at about $200 payment on a different car. If I have high debt to income ratio, will I have a problem getting a loan? or will they consider the reduction in payment when approving the loan?
I am just starting to look into this, and I have not talked to a financial institution yet. I was hoping that someone could tell me in general if you are trading in a car with a payment, if they do not count that payment against your debt to income ratio.

Genie Maczko

lissyanna21 asked:


I want to sell my car (for which I owe nothing) and enter into a lease on a new car, using the liquidated equity to pay off other debt I have; but I don’t have time to go through the process of selling the car myself. If I trade the car into the dealership I get my lease through, could I put only a portion of the value towards the lease (as a lease reduction payment) and receive the remainder back in cash? Or is this simply not done?
I want to sell my car (for which I owe nothing) and enter into a lease on a new car, using the liquidated equity to pay off other debt I have; but I don’t have time to go through the process of selling the car myself. If I trade the car into the dealership I get my lease through, could I put only a portion of the value towards the lease (as a lease reduction payment) and receive the remainder back in cash? Or is this simply not done?

UPDATE: Just as an FYI, I’m well aware the advantages/disadvantages of leases, comparisons of stated vs. imputed interest rates, etc. (I’m an **** retentive accountant who spends waaay too much time planning in spreadsheets ) – leasing is simply a better option for me at this time in my life, so please refrain from answers stating nothing other than “leasing is evil”. Thanks!
Again, not to be a brat, but I’m not looking for “why do you want to lease” questions – I have other debts that have higher interest rates than the imputed interest on a lease would be, and yes, the amounts I am currently putting towards the other debt each month will be put towards my lease payment (which, knowing how I use my cars, will result in a lease buyout at the end of the lease that is lower than what I could turn around and sell the car for). So please, I have considered all the options, and this is the best one. Thank you.

Jeffie Hibberd