Best answer from question by pjsccc98:
Answer by H.B.K.
this is just the way of making t pay for longer get all the detail on how long the payments and other stuff are before making a decsions and i would just Cancel All my credits cards when i am in dept so should you>
It is always better to finance at a lower rate.
Here is an online Amortization Calculator to see how much money you will save.
http://ray.met.fsu.edu/cgi-bin/amortize
The smart thing to do would be to finance at the lower rate, but CONTINUE to send the bank the same amount each month. This will just get your debt paid off quickly.
For example. If you currently owe $ 5000 at 19.95% for 4 years your monthly payment is $ 152. In the end you pay $ 2300 in Interest alone.
If you refinance that same $ 5000 at 12.95% for 4 years your monthly payment is $ 134. and you pay $ 1400 in interest back.
BUT if you refinance that $ 5000 at 12.95% and keep sending your $ 152 payment amount each month – you will only pay $ 1200 in interest and have it paid off in 3.5 years.
When it comes to debt, you need to be smart. Do not refinance only to drag it out for another year. Be strong and pay it off quickly.