NFB: Just added another $5000 to my car loan, good idea or bad?

[TODD 2000 V6 CAMARO]

I have been paying my credit card payments across the border from Saskatchewan to the states for the past three years. Well, recently one of the credit card companies decided that they no longer want to take money orders or checks drawn on Canadian banks. Of course, they didn't bother to tell me this, they just mailed my last payment back to me and then charged me a late fee. I got the late fee taken off, but I am done with them. So, I got the credit union that financed my car to give me a $5,000 loan on the equity in my car.
The good thing about this is that it will drop the interest I am paying on the debt from 25% to 5.45%. And, I can pay off the one completley and pay off most of my other one, and just have two payments to make as opposed to 3. I guess the only downside is that I now owe almost as much as my car is worth. So I guess I will have to make some big payments and try to pay it off as quickly as possible. Do you guys think I did the right thing? I mean, I do plan to keep the car after it is paid off, at least for a while. But I do want to eventually get a Z too. I dunno, I am just glad to be rid of my debt to Chase bank.

[Joe 1320]

Dropping the interest down from 25% is good. Making an unsecured debt a secured one by borrowing against the car is bad. However, for the dollar amount you are dealing with it could be worse. Just pay it down as quickly as possible. The faster you pay it down, the less you will have paid in the long run. As long as you don't owe more than it's worth, you'll be fine.