You will now pay $46,080 to pay off the new loan versus $40,392 for the original loans, even with the lower interest rate of 9%. Get an extra job to bring in more money, and start paying off the debt.
This means you paid $5,688 more for the “lower payment.” Not such a good deal after all.
So if you stay in debt longer, you get a lower payment, but then you pay the lender more.
Even worse, in some cases the interest rate is actually higher, meaning that you’re paying even more in the long term.
Because they are secured, a lender can attempt to seize property if the borrower goes into default.