Right Approach with Auto Loan and CC?

Tips and Deals Forums Consumer Credit Right Approach with Auto Loan and CC?

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      Sorry everyone if this is the wrong forum. Just want to know if this is the right approach to take regarding my auto loan and paying down my CC utilization.
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      So I am looking to get a car where after TTL, the loan amount will be about $21,500. I currently have CC debt of $24,000 and therefore a utilization in the 90%’s. My current TU Fico is 686 and let’s just say that my credit is for the most part spotless and it’s the high utiilization that’s keeping my score down. So my scenario is this:
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      I am deciding between either a 60 month auto loan or a 72 month auto loan. Both will have the same APR at 4.25% The 60-month loan would result in a monthly payment of about $395 a month with the total paid amount at $23,850. The 72-month loan would result in a monthly payment of $335 and a total paid amount of $24,330. Therefore, the difference in interest accrued between the two would be $480.
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      I am currently paying about $485 a month for my car and have about 40 payments left, so either term would reduce my monthly payment. My thought process is that it would be more prudent of me to go with the 72-month term and use the difference of $150 to pay down my CC. My circumstances are such right now that it would take me about 6.5 years to pay off my CC debt. If I’ve calculated things correctly, the extra $150 would shorten it by almost half to 3.5 years ro about 30 months. Once I pay off my CC debt, I can then start paying double the amount of my monthly car payment of $335 which would cut down my 72-month term down to 54 months and reduce my total payments down to $23,950 for a savings of $380 in interest. It would still be $100 more than I would pay for the 60-month loan term.
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      The benefit I see is that currently, the APR for my cards range from 10% to 20%. Overall, I would save money in the long term by using the money saved to pay off my higher interest CC’s. Compared to my current car and the remaining loan amount that’s left, buying a new car would set my back by about $4,500. However, as I would use the money saved from the lower car payment towards my CC’s, it would shorten my CC payments by about 30 months which would equate to a savings of $19,000 in credit card payments. Therefore, it would result in an overall net savings of $14,500. Aside from the savings, it would also result in increasing my credit score in the case that I start searching for a home (most likely 5-6 years from now). Also, with the 72-month term, it would give me some wiggle room in the case I need it for whatever reason.
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      So what do you all think? Is this a good idea? Have I missed out anything that I should look into? Thanks in advance.

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