I need to pay off a medical bill and my credit card and then have money to get back on track. Are personal lines of credit good for that? I'm only looking to get between 2 and 3 grand. I do not know anything about this so any advice would be much appreciated! Thanks.
2006-09-22 04:24:28 · 6 answers · asked by pita_wagner 1 in Business & Finance ➔ Personal Finance
My answer if far from typical. A personal line of credit is debt - and debt is a very bad thing 99% of the time.
Do what you have to do to get over this rough spot, but learn from the experience. You should set aside enough money so that you don't have to borrow 2-3 grand when you need it in an emergency.
Sit down, and think long and hard about your situation. Pay particular attention to your expenses. Cut everything to the bone, and then cut some more. If you approach this with the right frame of mind, you can actually enjoy frugality.
It is possible - my wife and I live on about $8,000 per year, and have a blast. We live with elderly relatives who need our help, and we get shelter. We make a point never to sponge (we bought them a vehicle), and always make sure that we try to give more than we get.
We now are making good money, but still only spending about $8,000 per year. But what has happened is that our bank account has swollen to the point where I can retire today, at 42 - but I CHOOSE to keep working because I enjoy the work.
You are lucky to get this warning shot fired over your bow. 2-3 grand is not that big a hole, but do yourself a HUGE favor and change to a more frugal lifestyle.
I honestly wish you the best of luck.
2006-09-23 04:44:53 · answer #1 · answered by brunt 4 · 0⤊ 0⤋
Yes because most often they about 1% above prime and you could pay interest only,most banks will not grant one under 10,000.00$ as it is not worth tere time to set up one smaller.You find it a lot cheaper to do this when making major purchases as well.For instance when companies offer no payments for a year the interest is already built into the price.When a major car company offer o $ interest you are much better to take the cash incentives and then use your line of credit and then set it up as a loan and make your payments on time,you will save alot more money that way.
2006-09-22 05:27:57 · answer #2 · answered by michael m 2 · 0⤊ 0⤋
I wouldn't get a Personal loan to pay off medical bills, no way! Medical bills are generally interest free!
2006-09-22 04:40:13 · answer #3 · answered by JaneDivided 4 · 0⤊ 0⤋
Pita, you are a perfect candidate to read Dave Ramsey's book "The Total Money Makeover", and to use his "debt snowball" approach to kill your debt. Visit his web site at www.daveramsey.com for lots of free information.
He has a plan to get you from being in debt to never borrowing money again thru growth of personal wealth. Also check out the radio stations in your area so you can hear his radio show.
Good Luck
2006-09-22 04:35:09 · answer #4 · answered by snvffy 7 · 0⤊ 0⤋
Good.. As long as you are discipline. The rates would be mush lower tat a loan and with the LOC you can always use it later. A loan you pay a cretain amount per month until it's paid off. The LOC you could just pay the minimum payment if you had to for one month
2006-09-22 04:30:10 · answer #5 · answered by Tony C 1 · 0⤊ 1⤋
personal loans and usecured are reserved for only our best customers who have credit scores of 750 or above otherwise we do not even bother taking an application .
2006-09-22 05:42:53 · answer #6 · answered by Anonymous · 0⤊ 0⤋