Consolidating vehicle loans
Stressed, debt-ridden consumers are easy prey for shady debt consolidators.
One trick is for consolidators to lower your monthly payment, but dramatically increase the interest rate and the terms of payment.
You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.
If you would like to add other eligible loans, your servicer must receive your Request to Add Loans Form within 180 days from the date your Direct Consolidation Loan is completed (originated).
And, by mixing together all your debts, all your assets are now equally at risk.
With a simple car loan, if you default on your car payment, a lender could repossess your car - but wouldn't have any title to your house.
Like most consumers, you're probably paying off a few other debts in addition to your car loan.
Mortgage payments, credit card bills, boat payments -- if only there was a way to tie all these debts together into one, easy, monthly payment.
Do it right, and you can end up saving a good chunk of money per month.Your auto loan lenders may be more than willing to ignore the occasional late payment or negotiate an alternative payment schedule if you hit hard times.A bank, on the other hand, might be more prone to send in the debt collectors.Yes, you can consolidate your car and personal loans if you qualify for a larger loan.Usually it's easiest if you own a home with enough of an equity cushion to borrow against it.