2007-01-24 04:31:41 · 9 answers · asked by vivandmatt 2 in Business & Finance ➔ Credit
With a loan, you know up front what your interest is, and that would be a huge savings, because the credit cards are charging you interest every month on your balance. I would suggest getting the loan if you have the means to do so. Also, you know that in 4 years, or whatever the loan time is, you will be out of debt! Just don't rack the balance up again!! Make this your lesson learned!
2007-01-24 04:40:36 · answer #1 · answered by BMW BFD 5 · 0⤊ 0⤋
Depends on you. Have you had a life change that will stop you from running up credit cards? If so, take out a low interest rate loan and pay them all off. Then pay off the loan. If you have not changed your spending habits then you will end up further in debt.
The next option would be to target the highest interest rate card to payoff first. Make the minimum payment on the rest. Pay off the next highest, etc, until you are free of debt.
You can always transfer all of your balances to your lowest interest card (pre-negotiate with the creditor first) and then pay it off.
Those are some basic options.
Best of luck.
2007-01-24 04:41:04 · answer #2 · answered by David 3 · 0⤊ 0⤋
Only get a loan to pay off the credit cards IF the interest rate is less. ... and then cut up the cards so you don't use them and end up with a loan and credit card balances.. Other wise, you can choose one of two options for paying them off...pay the most on the smallest balance so it is paid off and then put that payment on the next smallest and so forth or if you have one with a lot higher int erst rate..pay it off first while making smaller payments on the others..only your specific balances and interest rates can tell you which is best. Find an on line calculator to find out which will save you the most...they will project different pay off times and interest depending on the info you put in..
2007-01-24 05:43:42 · answer #3 · answered by sw-in-gardener 3 · 0⤊ 0⤋
pay the lowest one off first, while still sending the monthly amount to the others. Once you get the smaller one paid off, take that money and apply it to the next one that is now the smaller one. Do this until you have them all paid for. I would not get a loan to pay them all off... if you do that; you are more apt to charge on the credit cards.
As you pay them off, cut them up... limit your self to one maybe two credit cards in your wallet, no more.
2007-01-24 04:41:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pay off the one with the highest APR first, meanwhile paying the minimum balance on your other cards. When the first is paid off, move on the second and so on. Meanwhile, stop charging on your accounts, and don't pay so much money toward your debt every month that you end up having to charge again for food and gas, etc. Get a budget and stick to it.
2007-01-24 12:43:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
credit cards will always cost you more in interest than a loan will, so my advise would be if you can, get a loan. but there's one draw back, you will have the use of your credit card again, and if you are not good with money - you run them up again and be in even bigger dodo. if you can't get a loan, i would pay it off with the least interest card. best is - don't pay with your card if you don't have the cash to pay it right back. for emergencies it's better to 1. save money or 2. have a line of credit available which you could discuss with your bank.
2007-01-24 04:41:53 · answer #6 · answered by merlineaton 5 · 0⤊ 1⤋
Hello there.
Do you own a home?
If so, then your best option is to do a debt consolidation refinance..
Thre reason is ay that is the simple difference between the interest you are paying on each type of loan... Besides the fact that the average credit card is at 13% interest, adn the average mortgage is at 6.5% interest, there are many other reasons..
1. Credit cards are "revolving debt" they are terrible for your credit, and you pay a different type of interest then on a mortgage.. A revolving debt (credit card, store account) has what is called "COMPOUNDED INTEREST" What that means is you are paying interest on top of interest on top if interest that you have already paid for..
With a mortgae, you are paying what is called
"SIMPLE INTEREST" Meaning, you only pay interest on what you owe.. that is it..
So technically, if you ahve a credit card at 13% interest, in mortgage terms you are actually paying roughly 26% or more!
So the obvious reason to do a debt consolidation refinance is to save thousands in unecessary interest..
Another main reason i advise this is because revoving credit cards are very bad for your credit.. Mortgage s on the other hand are great for credit! So, by consolidating your credit cards into a mortgage, you will dramatically improve your credit rating!
There are many other good reasons to do this type of loan, and i would be happy to explain them to you..
Im a licensed loan officer of over 13 years, and can originate mortgaes nationwide..
Feel free to call or email me at anytime!
Jason Fry
Treehouse Lending
312-239-7126
jfry@treehouselending.com
2007-01-24 05:40:06 · answer #7 · answered by Anonymous · 0⤊ 1⤋
The usual advice is to pay down first the cards that have the highest interest rates. The best effect on your credit score is to first pay down the cards that are utilizing the greatest percentage of their credit limits, at least until they are all at less than 30% of your limits.
2007-01-24 04:41:10 · answer #8 · answered by cmor5859 3 · 0⤊ 1⤋
I would start by paying off the one with the lowest amount on it or if it saves money, the card with the highest intrest rate.
2007-01-24 04:40:40 · answer #9 · answered by Jen G 3 · 0⤊ 1⤋
need more info an account balances to tell you the best way
2007-01-24 04:54:20 · answer #10 · answered by golferwhoworks 7 · 0⤊ 1⤋