A couple years ago me and my spouse needed a car. We got a loan of $9000 and purchase our first car together. The car wasn't the nicest newest model but it worked for us. One year after our purchase we wanted to refinance since our rate was 19.99%. We went to a car dealer instead and got exited over a new car and the dealer was offering us a 6.99% rate. Since we still owed the old car, the dealer just payed for part of the old loan and the rest was added to our new loan. After paying for it for 3 years we still owe about $22,000 and our car is only valued at $15,000. So my advise is pay off the old accounts you have first. Don't get carried away and try to ask yourself if you really need whatever you want to purchase.