2007-03-14 07:01:18 · 12 answers · asked by CLVSJ 1 in Business & Finance ➔ Credit
In general, it's a good idea to do this if the APR is lower than that of the credit card debt. It wouldn't be a good idea to get a HELOC, though, because you'd be putting your house on the line for an unsecured debt.
I'm probably going to get crucified on here for saying this, but the Dave Ramsey's idea of the "debt snowball" is going to end up costing a lot more than it's worth! Paying off the highest interest rate first will save the most money. Otherwise, it's a sinking ship with more water coming in than going out and you sink further and further into debt. If you patch the holes where the water's coming in the fastest (highest interest rates), you'll have more of a chanc to bail yourself out.
2007-03-14 07:04:50 · answer #1 · answered by Anonymous · 1⤊ 1⤋
In some cases - I owed $1600 from charging our honeymoon - my interest rate was 16% so I when I got a loan to pay off a higher interest charge account (our wedding rings), I went ahead and had this added as well. It would've taken me longer to pay it off than it will with the loan and it saved me $60/month!
Some people would also suggest doing a balance transfer, but I'm one of those that don't want too many credit cards or inquires and this would require transfering it every 6-12 months or how long your term is for.
2007-03-14 07:05:49 · answer #2 · answered by reandsmom77 6 · 0⤊ 0⤋
Absolutely not. You're only digging yourself deeper that way. The reason why is because those "consolidation loans" that people use to consolidate their credit cards charge just as much as the cards. Also, they usually require a checking account/routing number so they can debit at their own will. Which means, once you think you have cash money, they want to try to take it out. Sounds like a lose-lose situation to me.
Also, personal loans usually have variable APRs which can sky-rocket at any time!
I say go with what the other person said and SnowBall your debt. www.daveramsey.com
2007-03-14 07:08:16 · answer #3 · answered by MJ 2 · 1⤊ 0⤋
Credit card debt is just about as bad as it gets. If you can't or don't pay off your bill each month, you will pay about two, three, or four times your original cost for everything you buy on a credit card. Look at the total cost of a personal loan compared with the total cost with the credit card. If you can't pay for it each month, don't do it or buy it. ~
2007-03-14 07:21:04 · answer #4 · answered by Pey 7 · 0⤊ 0⤋
If its a better interest rate. Credit card checks are great for doing that. I get checks from chase for 3.99% for the life of the loan, and 1.99% for a year. Get online to your credit card and see what they want for balance transfers, you can transfer money into your checking account and pay off all your cards except the one for the low interest rate. Make sure you dont owe anything on the credit card on a higher interest rate when you make pymts they put it all towards the lower interest rate and nothing towards the money you owe on the higher interest.
2007-03-14 07:09:47 · answer #5 · answered by letthepartybeginnow 3 · 0⤊ 0⤋
Usually you can get balance transfers for 0% for 6 months on credit card. You might have to pay a one time $50 fee(if you look around probably can find one w/ no fee), but it will give you 6 months to pay of your card. If that is not enough time transfer it again.
2007-03-14 07:05:38 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Paying debt off with debt to me is a bad idea. I recommend consolidating your debt (like put all your balances together on your lowest interest credit card). You'll just be tempted to spend more.
2007-03-14 07:05:57 · answer #7 · answered by Principessa 5 · 0⤊ 0⤋
properly, there are various factors to contemplate. in the beginning, how plenty is your complete debt? 2d, what are your expenses of pastime? in case you have a practicable volume of debt and are able to get carry of a private loan at a decrease pastime fee then that's relatively helpful. although, make certain you pay the taking part in cards off on the instant yet do no longer close the bills (and refrain from employing them to boot or you will defeat the purpose!)
2016-11-25 19:57:06 · answer #8 · answered by guiterrez 4 · 0⤊ 0⤋
another vote here for the dave Ramsey. The snowball debt works because when you start with the smallest bill first you pay it off faster. Then you can put that money on the next one. It keeps you motivated to get to the next one.
Listen to daves radio show on his website or find radio station near you that carries his show. He also has a 10 archive of shows. Lots of good advice on money and debt.
Listen and let me know what you think.
2007-03-14 07:47:02 · answer #9 · answered by heybulldog 5 · 2⤊ 0⤋
Sure..if you get rid of the credit cards.
2007-03-14 07:09:12 · answer #10 · answered by tmlamora1 4 · 0⤊ 0⤋