I have a Personal Loan for $5,000 which I used to pay off my Student Loan, and a credit card that I owe $5,500 on. (My limit is $5,800!) Is there any GOOD ways of consolidating this debt into one payment to get rid of one interest rate? I'm not usually struggling to pay my payments and I can't see paying rather high interest rates on BOTH of these loans. Any words of wisdom?
2007-09-05 09:52:25 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
What are the interest rates on the debt?
Make your payments on time every month, then be shopping around for a lower rate credit card with a $10,000 line of credit. If your credit is good, you should be able to find one.
2007-09-05 09:58:44 · answer #1 · answered by AllTheGoodNamesAreAlreadyGone 3 · 0⤊ 1⤋
Unfortunately, there are only a few companies that offer consolidation of your private loans at this time. Since you are obviously very interested in consolidating your private loans, I would check out when programs are expected to improve and become available.
Also, you should keep in mind that when programs become available you will be unable to consolidate your private loans with your federal student loans.
Remember, if you were to consolidate the private and the federal loans together, you would lose all of your federal privileges on your federal student loans, including forbearance, deferment, and subsidies.
For more information about consolidation, check out the source below, or message me at studentaidlending.
Good luck, I hope this helps!
2007-09-06 08:30:52 · answer #2 · answered by Student Loans 4 · 0⤊ 0⤋
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
2007-09-06 02:29:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
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2007-09-06 00:11:43 · answer #4 · answered by alexa dion 3 · 0⤊ 0⤋
What is your rates?
I would have sent that $5,500 to pay off your credit card. Sometimes paying off student loans later is better, depending if your rate on your student loan was lower than the personal loan. If you have good credit try to get an increase on your personal loan to cover your credit card. Do some reasearch to make sure you would be saving in the long run.
2007-09-05 10:05:49 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Which has the higher interest? Concentrate on paying that one off first.
You need to make yourself a strict budget. Eliminate the extras -- cell phone, eating out, new clothes, etc. Put every penny you can squeeze out of that budget on the highest interest rate debt while paying minimum on therest. When the highest is paid off, move to the next till they are all paid off.
Taking out yet another loan to pay combine debts is just shuffling your debt around. Just work on paying it off.
2007-09-05 10:13:55 · answer #6 · answered by bdancer222 7 · 1⤊ 1⤋