Combined I think I owe like 4,200 dollars, but I really need to pay it down....Anyone know of good card deals going on right now? Do ya'll think I'd be better off keeping them separate, or consolidating?
2006-07-06 05:28:48 · 14 answers · asked by sun kissed 2 in Business & Finance ➔ Personal Finance
A lower overall monthly payment is not necessarily a good idea unless you really cannot afford to make the minimum payments on your individual cards. A lower payment (unless the rate is a lot lower) usually means you will pay more in the long run because it will take you longer to pay it off. What is the interest rate on the loan/card you want to consolidate to? If the rate on the new card is lower, does it stay lower forever, or is it a introductory rate that changes after a few months? Please carefully consider all these factors and by all means do all you can to make more than the minimum payments. You will save yourself a ton of interest by doing this. Try to stop adding any extra to the existing balances. This will only worsen your current situation. Good Luck to you!!!
2006-07-06 05:36:47 · answer #1 · answered by Heatmizer 5 · 3⤊ 0⤋
First, let me give my standard warning about consolidation loans. Many people have fallen into this trap. They take out a loan to pay off their credit cards....then turn around and run up the credit cards again. Now they are in twice the amount of debt, and end up filing for bankruptcy. I have seen this happen many times. That said... If you have a home get a home equity line of credit. The interest rate is low, and it's tax deductible. You can get a personal loan, but trying to get a $12k loan with no security may be difficult. I'm not sure you will find a credit card with a $10k limit either, but if you can find one with a great interest rate, do that. For now, pay off that card with the small balance as quickly as possible, then pay off the large debt. Also don't be afraid to call the credit card company up and ask them to lower the rate. Sometimes you will catch them on a good day, when they are acting human.
2016-03-27 06:28:57 · answer #2 · answered by Michele 4 · 0⤊ 0⤋
The first thing you need to do is stop spending uncessarily. If you've done that, fantastic! Consolidating into one lower payment is a good way to go. If you can get a 1.9% (or lower) for 6 months or a year that's a good way to do it. Pay as much as you possibly can every month. If you own a home that isn't overleveraged (strung out on home equity loans) you can get a small home equity loan ONLY for the amount needed to pay off your credit cards. DO NOT accept a line of credit. Its too easy to get back into debt that way. A home equity loan has a double benefit. First you save on interest (6-7% vs. 18-24.99%) and the interest you do pay is tax deductible if you itemize.
Regards
2006-07-06 05:38:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A debt consolidation is a great idea if :
- you get a better rate
- you payback your debts in a mid or short time (long tme will cost you the same, because of interests)
If you use one credit card to consolidate, ask them if they have a special offer for consolidations
2006-07-06 05:35:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I would see what kind of offers you are getting for credit cards and see if the interest rate for one card with all the debt would be better than 3 with their current rates. Personally, just pay one off as quick as you can (the highest interest rate one) then use the money you save from not paying that one to pay off the next, etc.
2006-07-06 05:32:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Don't like so many credit cards, however, the best thing for you would be to get a zero-percent interest card and pay off the other three. Then pay the one debt as quickly as possible, before the rates jump.
2006-07-06 05:34:13 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Good advice above, though it may be tough to get credit when you've got such a high credit debt already. Still, consolidation is key, if you want to stop paying so much interest.
My suggestion? Get rid of ALL your credit cards until you're out of debt. Then just get one general card (Discover, Visa, etc.) and use it for all expenses, so you have only one bill to pay.
2006-07-06 05:33:56 · answer #7 · answered by moviesauce 3 · 0⤊ 0⤋
Whatever you do, try to pay off your credit card debts ASAP and, after you do, budget you money so you will not have to use a credit card to buy stuff unless you already have the money in you account to pay it off. That way you will have a better credit rating, too and will be able to get loans much easier.
2006-07-06 05:33:09 · answer #8 · answered by randomactsofkindness2 2 · 0⤊ 0⤋
if you can find a card that has a lower interest rate than the three you have its much better to put them all on one card. as long as you dont rack up more stuff on those three. a lot of cards offer 1 year with 0% apr when consolidatiing also. i would check into it just be careful of annual fees and stuff. also do not use those other three and make it worse
2006-07-06 05:32:58 · answer #9 · answered by msterlibgsu 2 · 0⤊ 0⤋
I came across this site Prosper.com where you submit the amount of money you want and regualar people bid on loaning you the money. The amount you want seems reasonable to win some bids but if your state doesn't alllow a maximum of at least 10% or more , you may not get any bids. Visit the site I was intrigued.
2006-07-06 16:47:20 · answer #10 · answered by babig221982 3 · 0⤊ 0⤋