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You'd refinance your car because the rates on the car will be much lower than on your credit card: the car loan will be somewhat secured against an asset (the car).
When you refinance the car (increase your car debt), take the money you get and pour it into your credit cards. Total debt stays the same, it just changes flavour.
Think of it as moving debt from a high % debt (credit card) to a low % dept (car debt). Your total monthly interest is now lower, which means you have more money to spend on reducing your debt every month.
Damn, that NoSoup knows his stuff. =)
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Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.
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