22k on 5 low interest rate credit cards, should I consolidate onto personal loan?
mattzoids asked:
22k in credit card debit.
One card 7k on 6.9%, One 10.99% with 6k and the other two 10% and 12%.
I can only get a personal loan through CBA with a fixed rate of 16.45%….should I consolidate or not?
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22k in credit card debit.
One card 7k on 6.9%, One 10.99% with 6k and the other two 10% and 12%.
I can only get a personal loan through CBA with a fixed rate of 16.45%….should I consolidate or not?
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Tags: 7k, Cba, Personal Credit
February 8th, 2009 at 2:51 am
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On the face of it, no, because of the rate compared to what you have. However, would this make things a bit easier for you to deal with? Would you take every extra dollar you have each month and pay toward that 1 debt so you get rid of it and then the interst would not hurt so much?
What about a second job for 6 months to pay the debt down as well?
And last but not least would you run those cards right back up to the max as soon as you pay them off with the consolidation.
February 9th, 2009 at 9:50 pm
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why would yu consolidate at a higher int rate, if will cost you more to pay off the loan - plus the monthly payments would probably be higher also
February 11th, 2009 at 5:10 am
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I don’t know who CBA is. But when you “need” a personal loan to pay down other credit debt is when you are least likely to get it from a legitimate source. And it only makes sense to try that if the interest rate would be “lower”. Otherwise you may likely end up paying more and/or longer.
When I suddenly realized I was deeply in debt in the mid-1990’s my bank offered me a personal loan, but when I applied they gave me a line of credit for $500 with $25 annual fee on top of interest. I told them to forget it. But I had the assets to cover my debt, so since then I paid it down, bought my first home with 20% down in 2002, and all is well.
If you are deeply in debt, you need to make adjustments to live within your means (spend less than your income, or increase your income to cover what you spend).
February 12th, 2009 at 2:54 pm
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No….No….No….call each card and politely ask for a reduction in the interest….one or two might….even if they don’t…..it will be much easier to tackle the debts individually….
If you are serious and committed……list your bills smallest BALANCE owed to largest……focus every extra penny on the smallest balance while paying minimums on everything else….Once you get that first small victory under your belt….you might stay committed to tackle the next one….
Most people say start w/ the highest interest rate….but if you are serious…..you could free up extra money faster buy paying OFF on of the cards first….
lower your cable bill/cell phone package/pick up a weekend morning shift at McDonalds….Deliver pizzas….
22K is a chuck of debt……but it’s not insurmountable….if you consolidate it…..you will never get it paid off. Nature of the beast.
February 13th, 2009 at 9:59 pm
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You have credit card debt, and you wan to pay it off as quickly as you can. We will assume that you are going to stop creating more debt. You have changed your ways. You also understand that paying credit cardIf you are serious about getting those debts paid, you may have to eat $4 frozen pizzas for now. Do what you have to do, and determine how much you can apply towards the debt each month.