should i take out a loan?

Question

So my debt and my boyfriend's debt combined is 10,000 (mostly from our apartment furniture) and credit cards but I was going to take out a loan for 15,000 so we could have some extra I bring home about 2,000 a month by myself and my bofyriend about 1,000 a month...do you guys think it will be a good idea to get a personal loan..we do live together and i am 23 years old and he is 29

i'm tired of paying like 6 different things, my understanding is if i take out a loan i will have more money left over to save for more imporant things

I also work with loans so I am not stupid to the process

I also plan on putting 1,000 away for emergency so i dont use credit cards again

Answer 1

The suggestion is that you check into any requirements that the credit card companies have that may allow you to cut your costs.

Some loan companies may have extra hidden fees, such as life insurance or disability insurance, and they may want your furniture as security.

Your best bet may be to just get the credit card with the highest rate paid off first, then go after the next one, and so on and so forth.

See Dave Ramsey's website.

Then shred the cards and live on cash until you get savings.

Answer 2

NO!!! Absolutely do not take out a loan to pay off other debt, especially your boyfriends debts. Even worse to take another $5K for "some extra"! That is just begging to burry yourself in debt.

Shifting your debt to another loan is a bad idea. You will end up stringing out your debt and paying more interest in the long run.

You should just bite the bullet and work on paying off the debts you have. Start with a strict budget. Eliminate all the extras -- eating out, new clothes, cell phone, etc. Put every penny you can squeeze out of that budget on the highest interest rate debt, while making minimum payments on therest. When the highest is paid off, move to the next till they are all paid in full.

You can probably pay it all off in 2 or 3 years.

I'm sure this will make you angry but you should not put any of your boyfriend's debts in your name nor should you create and joint debts. If something happens to your relationship, you would be left holding the bag. And even tho you just know that would never happen, it happens all the time.

Secondly, if your 29 year old boyfriend is only making $1000 a month, what is wrong with him? That's half of what you make. And I bet the lion share of that $10K debt is his.

Your boyfriend needs to find a better paying job or at least get a second job and bring in more to pay off those debts.

Answer 3

Hey, can you do some extra math? Calculate your monthly obligations today - add up minimum payments on all credit accounts. Compare it with loan monthly payment. What is less? Loan payment - take it, monthly obligations - do not take loan, even - do not take loan. Why? In two first scenarios the answer is obvious - you are saving money, use them to pay debts quicker or for emergency, it is up to you. What about "even" situation? I am not taking your argument about 6 accounts to pay too serious. Additional amount in personal loan in any way is worse than 6 different payments especially if you are able to make payments through Internet. Secondly, the idea to get rid of credit card payments won't help you in long run with your credit history.
I do believe that if you are qualified for a personal loan for 15 K, you will be approved for a credit card with the same limit (don't forget to include balances transfer request along with your applicationsYou will find a lot of offers out there with 0% on transfered balance for a year. I am absolutely sure that in this case you will really save some money, which you can put aside for emergency fund. A lot of people selling an idea to make emergency funds through borrowing additional money. I never heard clear argument on favor of this opinion. Through lending you can get funds for investments, if you are ready to take the risk. Otherwise... I don't know.
By the way, emergency fund is not for credit card replacement or other important things that you have in mind. Better keep it separate - emergency, every day expenses and fun/important stuff.

Answer 4

Pay off your debt first then save for what you want in future. If you take out a loan for 15,000 then you will have a horrendous amount of interest to pay on it. It is more economical feasible to clear the debt you have and start with a clean slate. I know how hard it is cos my ex husband left me with 2 children and 11,000 quid of debt! It took me ten years to get on my feet and now if I don't have the cash to pay for something I save up for it. I have no debts at all and it's amazing how much money I have managed to squirrel away for Christmas and stuff like that and I don't work due to ill health! I really hope you will tighten your belt and carry on as you are. You will be so much better off in the long run.

Answer 5

It's very risky what your proposing doing. You can't borrow yourself out of debt. There's no way around that.

If you combine all your CC debt into one loan and one monthly payment, the interest may be cheaper and better for you. (Called a Refinance)

The danger is that once you clear your CC's, you have to really avoid un-necessary spending at all costs.

Most people fall into the trap of re-financing, then running the CC's up again.

If you can avoid this, borrow only what you need to refi the credit cards.

Answer 6

only take out a personal loan if the rate is lower than what your are paying. Dont take out anymore because more than likely you will spend it up on unnecessary things (its only human) but yea compare rates with the cards, your furniture payment interest rates and local bank rates on personal loans.

Answer 7

if you think you can afford the payments on the loan each month. you have to ask yourself the question do both of you have good jobs .if so do it. if not dont. and also who's name the loan gonna be in. me personally ive been involved in loan company all because of a man he will leave you holding the bag

Answer 8

no. try to pay off the debt!!