I am thinking about getting a loan to pay off my credit cards.?

Question

From a company called American General Financial Services, a member of AIG with a 22.30% APR for 36 monthes Is this a good deal? and does anyone know anything about this company? or any other suggestions
Thank you

Answer 1

No, this is not a good deal - you'll probably end up paying more interest with this loan than you would paying off your credit cards directly. Go to a reputable bank in your area (the one you have a bank account with will be able to help) and apply for a loan there. They will be able to offer you something much better.

Answer 2

I don't know anything about that company, but before you do this, shop around. A local bank, online loans, debt consolidation. Weigh all your options before moving forward. Also, call your credit card companies and see if they will work with you. If you have been paying on time for the last 3-6 months, they will consider lowering your APR &/or min. payment. If you are 90 days or more late paying them, sometimes they will take a cut (as much as 50%) in recooping their money.

22% does seem very high. Isn't that close to what they highest government limit is? (I think it is 24%) Take a pencil and paper to it. Ask how much is the most I can pay dillegently til they're all paid off. How does 22% compare to the credit cards? Over time, how much interest will you be paying on either scenerio? It's a given that you owe the money, but you want to be smart about how much interest you have to pay. No need to pay more than you have to.

Whatever you do, consider your lifestyle and lower your expenses while getting out of debt. Try to cut back, like cooking at home, instead of eating out all the time. Little things like that can really add up.

Answer 3

The 22.30% is not a good rate for a loan!!! I would not suggest considering this loan if your APR for your credit cards is lower than 22.30%. This rate for 36 months will make your payments high and could set you back if your not careful. I would advise you to find an average of all of your credit card payments for the month. If this amount is higher than payments on the loan it could be in your best interest to take the loan. However, I wouldn't suggest using the credit cards if you decide to take the loan. In addition to averaging out your monthly card payments you would benefit from doing the same on the interest rates for the cards. I have not heard anything bad about this financial institution so I can't give you an honest opinion of them. You can go to several businesses and ask them their rates for the type of loan you want. Shop around to find the best rates!

Answer 4

My sister was having the same problems...DON'T do no loan...why pay more money to pay off money you didn't have to start off with? try a bill consolidator. There is a really good one that she is using it's called Genus. http://www.genus.org/ you can add just about all bills that can be unclaimed..such as school loans, credit cards, any type of loan, anything you are making a note on (I don't think they allow cars or homes though) and the good thing about it is they add up all you bills and decide what you can afford to pay...they send a letter to the people you want to add to, and they must agree to the amount (and my sister had I know at least 5 people she put on this and they all agreed and the total amount was over 9000 bucks..she only pays between 15-20 bucks per person that's about a hundred bucks a month for five major accounts...if all you have is one card...you may not have to pay 20 bucks a month. I do know whatever the account is for it must be 200 or more before they will do it. In doing the Genus they stop all late fee's, finance charges and any other hidden fee's

Answer 5

22.30% is extremely high! In 36 months you will repay more than double the of amount the loan you actually borrowed. You should contact someone from Primerica Financial Services, a subsidiary of Citigroup ([e-mail]). You will be able to get a lower rate and pay off the balance without paying double the amount. Let me know if you have anymore questions.

Answer 6

22.30% APR sounds really high. You're better off getting a credit card with an introductory APR of 7% or less for credit balance transfers.

Also, be very very careful of offers from places like MBNA or GE Money....they rein you in by promising a low APR but actually reserve the right to change it at any time....and then you find yourself paying even higher APRs than the credit cards you have now....not to mention the fees that you have to pay to transfer credit balances!

Answer 7

I took two loans about ten years ago to pay off my credit cards. I was so deep in debt that I didn't have any other way to get out. It helped because I became more disciplined. I cut up all my cards except for one. I watched my spending. I paid additional on my loans and paid them off in 24 months. The interest rate really sucked but I am glad I did it. It worked for me. You have to be extremely disciplined in your spending after that.

if you are take the loan better cut up all your cards and watch your spending carefully. There is no sense in taking a loan and then being right back where you started. You will only be in a deeper mess. Also remember it will affect your credit score. Financial loans earns a negative rating.

Answer 8

No that is nooottttt a good deal...youre better off just paying more towards your credit cards. There are some companies that will work with you on reducing your current APR.

Answer 9

Is the 22.3% rate LESS than that on your credit cards? If so, just make sure you read the fine print. Can you make extra payments to pay the loan early? or are there penalties?

what happens if you miss a payment? Does the interest go even HIGHER?

Your best bet is to concentrate on paying off the credit cards yourself. It doesn't make sense to "go into debt to get out of debt"

Answer 10

22.3 percent is awful high, is your credit card rate higher than that? AIG is a gigantic company, so at least they are legit.