Should I consolidate my credit cards??

Question

I have a $15k Car Loan, $6600 credit card, and $1500 credit card debt. I'm 22, student and I work part-time so my income is only $8o0 a month! Have you ever heard of going to a credit union and getting a consolidation loan? Do you just get a loan from them? I don't want to go thru any businesses because I heard those mess up your credit score. I want something legit but I NEED TO GET OUT OF DEBT! HELP!

Answer 1

It looks like you have $23K of debt, and an income of $9600 per year. With the interest involved in CC debt, it is going to take you a long time to get out of debt if things stay the same. You didn't mention what your current expenses are, i.e. rent, food, utilities, etc.

First thing, cut up the credit cards. Your income and obvious spending habits are not compatible with credit cards.

My suggestion is for you to sell the car for as much as you can get, and get a good, cheap used car. You cannot afford that "cool" car right now. By selling the car, you will free up the payment amount to start paying down those credit cards.

STOP SPENDING on anything other than the essentials.

Lastly, get a part time job and put ALL the income toward paying down the CC debt. Credit cards have horrid interest rates, so the sooner you clear them, the better off you are.

Once you get the CC debt cleared, then you can think about a better vehicle.

You are 24. You will get to the point in your financial life where you can afford better and more "stuff". But for now, pay off that debt so you don't ruin your credit rating.

Answer 2

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RE :Should I consolidate my credit cards??
I have a $15k Car Loan, $6600 credit card, and $1500 credit card debt. I'm 22, student and I work part-time so my income is only $8o0 a month! Have you ever heard of going to a credit union and getting a consolidation loan? Do you just get a loan from them? I don't want to go thru any businesses because I heard those mess up your credit score. I want something legit but I NEED TO GET OUT OF DEBT! HELP!
Follow 9 answers

Answer 3

You didn't say what your monthly payments are for the car loan and two credit cards. Also what is the rate on the car loan and cards. Usually a newer car loan is going to be a low rate. You can also call the two credit cards and ask to lower your rate. Tell them your going to transfer out your funds and they will lower it. Any consolidation will make you pay longer and higher rate. Sounds like your car loan is the big one. Look hard if you want to keep that.

Answer 4

Credit Card Debt Consolidation Loan: When using the credit card, people ignore the consequences of using the card too often. Frequent use of credit card causes bills to be accumulated and worsens your credit score. Besides lowering your credit score, you also face financial burden since the interest charged is very high.

Answer 5

I would talk to the Credit Union about a consolidation loan consolidating all three debts for a set period like 60 mo.and if payments are less than current total of the three,I would take the loan and cancel one of the credit cards and use the remaining one sparingly until your income increases.
Good luck

Answer 6

First step in my opinion would be to see about getting the credit card balances transfered to a zero interest teaser rate card.
your credit obviously be pretty good if someone loaned you $15k on what you make.
If you can, see about maybe taking a few less classes in school while you find another part time job. If you take a job as a waitress or a waiter in an upscale resturant you could double or triple your income on tips alone.
Dont forget to FILE YOUR TAXES. Even though you dont make alot of money, all of it will probably be refunded to you since you would be exempt due to your 'student' status.
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another source of money could be for you to sell back your books
sure you wont get rich but some of the text books can net you $50.00 or $100.00...
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can you tutor other students in classes taht you are doing well in? you could make a few extra dollars doing that too

Answer 7

where possible, and in similar circumstances to yours, it's a good idea to consolidate. otherwise, all you'd be doing is paying too much interest to all the creditors you currently owe. not all consolidation companies will affect your credit rating, so take the time to 'shop around' and find one that suits your circumstances. even if your rating is affected, it will only be for 3 years (in the uk anyway) you could then think of it as a short term fix on what could be a very long term problem. good luck !

Answer 8

A 15k+ car loan is way too much for someone on your budget. Talk to someone about getting out of your car loan and trading down to a cheap and reliable car, like a used Civic or Corolla, or use public transportation. You might have to pay more in the short term for the lender to release your car's title - but getting out those large monthly car payments is key. There isn't much you can do about the credit cards except paying them down whenever possible - in other words paying more than the mininum payment. If you're not paying for rent, food, etc. you have a chance of making a dent in these debts. If you are, I have no clue how you are doing it.

Answer 9

Find a company that specializes in consolidation of loans. They can definitely help you out. I had a roommate who used a consolidation company because she just had so many loans and it worked great for her. Best part is, all your payments get made on time (given you pay your consolidated loan on time).

Answer 10

What idiot loaned you 15 grand for a car when, effectively, you don't work? Sell the car. Pick up an old egg beater for about $2K. Get a job in a restaurant. That way you're not only making some $$, but odds are you'll be able avoid lots of food expenses. Last but not least, pay cash for everything. If you don't have the cash, guess what? You can't afford it.