Will someone please suggest how to lump credit cards together and pay only one low interest payment a month??

Question

Will someone please suggest best way to lump credit card debt into one low interest payment?
I've got very good credit and no cards are ever overdue. I ususally pay more than minimum monthly but this is taking too long to wipe out debt of high APRs. I've asked my credit union about a personal loan (anywhere from 10.9% - 18% APR) and was told to call these ccard companies and get a 10 day payout figure. Is this the best way to lump them and pay less each month freeing up some cash? Can you suggest another way?
I'm thinking I'd like to get them paid off within 36-39 months.
Thanks

Answer 1

I've called and gotten a consolidation loan. They ask for your income, and they will pull a credit report. If you have solid credit, this shouldn't take a long time.

The key is to cut up your credit cards and not use them.

If you have home equity, you can use that. The interest will be tax deductable, and probably at a lower rate. However, if you fail to pay the loan, you can lose your house.

Answer 2

If you own your own home, I would suggest taking out a Home Equity Loan. If this isn't your case, you may have to go with a condolidation/personal loan. I know different banks call them different things. Basically, you're limited on the amount you can take out to pay off your debt, and the interest rate is usually over 10% (as you stated above). I would call around to your local banks and ask for their rates for a personal or consolidation loan. Whichever bank or credit union can offer you the lowest rate, I would consider applying through them. As long as you have a credit score of over 650, you should be clear to approval. I wish you the best of luck! :)

Answer 3

That still seems like a high rate to me. I personal would recommend either refinancing your home and consolidating all the debt that way at one low payment a month, you could probably get a rate in the low low 6s.
Or get a second/ home equity loan and pay all this debt of, on this you could probably get in the high 7s low 8s.
This would save you a lot more money per month.
I guarantee you it would still be a lower rate and payment then what that credit union is offering. If interested in knowing what you could qualify for contact me directly.
Good luck with ever thing....

Answer 4

DO NOT GET A CONSOLIDATION LOAN! I see these recommendations, and vehemently recommend against it. Borrowing money to pay off borrowed money? That makes no sense.

#1. Find an organization that will help you get on a budget. (i.e. Crown Financial Ministries, Dave Ramsey)
#2. Get on their debt "snowball" plan, which in effect is paying off your smallest debt first, then rolling the payment you used to make on that debt into larger and larger debts. You pay only the minimum on all debts except the smallest, and so on.

Hope you check into these options rather than taking on more (or different) debt.

I wiped all my debt out after learning Crown's teaching, and now I help others do the same. I have 0 credit card debt. (only owe on my house, in which I have 40% equity)

Answer 5

You need a CONSOLIDATION LOAN. You shouldn't have any problem being approved since you have good credit. You can go to your local bank or credit union; that is where I would start.

Good luck!! ; )