Generally no. Using your car as collateral to pay off unsecured credit cards converts safe debt (you can default on a credit card without losing your car) into risky debt (default and you lose your transportation). The interest savings are usually 2-4 percentage points, which rarely justifies the risk for most households.
How a secured car loan works. You pledge your car as collateral. The lender places a lien on the title. If you default, the lender can repossess the car. Repossession can happen with as little as 30 days of nonpayment depending on state law and the loan terms. The car is sold at auction; proceeds go to the lender first, and any deficiency is your obligation.
The interest math. Secured car loans typically run 6%-12% APR vs. 8%-15% for unsecured personal loans, so the rate advantage is 2-4 percentage points. On $15,000 of consolidated debt, that is roughly $300-$600 a year in interest savings. Over 5 years, total savings might be $1,500-$3,000.
The risk math. The downside is losing your car if you default. For most households, the car is essential for work, school, and medical access. A 30-day repo can cost a job. Even if the loan saves $3,000 in interest over 5 years, one repossession event can cost more in lost wages, transportation, and the deficiency balance owed after auction.
When this might make sense. If your car is worth significantly less than the loan amount you need (negative equity in the car), a lender will not approve the secured loan in the first place. If you have a car worth $20,000 free-and-clear and you are consolidating $10,000 of credit card debt, the secured loan offers good terms (likely 7%-9% APR) and the loan-to-value is conservative enough that default risk is manageable.
When this is dangerous. If your income is unstable, if the consolidation does not address the underlying spending pattern that created the debt, or if you have other obligations that make missed payments likely, do not pledge your car. Unsecured credit card debt has consequences (credit score, lawsuits) but does not take your transportation away.
Alternative: title loan vs. car-secured personal loan. Be clear on the product. A title loan from a payday-style lender charges 100%-300% APR and is one of the most predatory products in personal finance. A car-secured personal loan from a credit union or bank charges 6%-12% and is a normal lending product. Make sure you are comparing the right products.
Better alternatives for most households. An unsecured personal loan at 10%-15% APR is more expensive but does not risk your car. A debt management plan through a nonprofit credit counselor consolidates to 6%-9% with no collateral required. A 0% balance transfer card costs 3%-5% in fees but no interest for 15-21 months. All three preserve your car.
If you do this. Make sure the loan term matches your realistic payoff timeline. A 36-month car-secured loan at 8% APR is much safer than a 60-month version because you spend less time in the at-risk position. Set up auto-payment from a separate checking account. Build an emergency fund first so an unexpected expense does not force you to miss a payment.