Should I get a personal loan to pay of my credit cards?

Question

I owe about 1300 on the credit cards and I feel like I'll get nowhere even if I drop a hundred every month on all three. The interest rate is too high maybe with a loan I can get 7-9?

Have any of you guys ever done this and if so do you recommend it. I actually have one card under consolidation and it sucks maybe I chose the wrong company The Achievable, but it they charge me 60 bucks a month along with they payments towards the cards. Any comments?

Please no freaken scammers you guys just need to burn in hell. Its bad enough getting scammed from the banks and credit card companies!!!

Answer 1

Nothing wrong with the answers above, but I feel I must say this. I'm not trying to be mean or hurt your feelings, but when you get a loan to pay off credit cards, it doesn't pay off anything. you're just moving the debt around.

1. I would recommend this plan if you can do one thing: Quell your spending habits! Many people who take out personal loans or home equity loans and pay off their CC debt are simply treating the symptoms, not the problem. It happens quite a bit. Someone moves the debt around and starts to feel good about themselves because they "accomplished something". So what do a lot of people do? build up the debt again.

2. Start listening to Dave Ramsey. You can find his 45 minute podcast on iTunes. I listen to him everyday. his shows about personal finance and he takes calls from people who either need advice about their debt or who have recently become debt free. Just download one podcast, you won't be disappointed.

Hope this helps! Good luck!

***ALSO***

DON'T be drawn in by those TV commercials that tell you that you can settle your debt for less than you owe. These are B-A-D.

What they do is get you to pay them for a "system" or for their "services". It's not a scam, as they actually do take care of things, but the way they do it is horrible.

They will simply have you stop sending money to the CC companies. No minimum payments, nothing. Then in a few months, after the CC company has called you about 1,500 times demanding their money, they have you offer the CC company a fraction of what you owe. Believe it or not but this does work, but your credit will be decimated.

Answer 2

I would do this if you can put your cards away and not load them up again and if the interest is much better than what you have now.

Go to my website and read it all, but especially the section "how credit scoring works".

I have run into a few of these scams myself after my ID was stolen and I had to declare bankruptcy. Now my score is up from a poor 486 to a good 729 in a little over a year, so this is an area I know something about. Taught from the school of hard knocks!

I would get rid of the consolidator if you can! You can handle this yourself and you don't have to pay anyone, you just need the will power. You can do it! I did it too!

Answer 3

Well, there are many factors to consider. First of all, how much is your total debt? Second, what are your interest rates? If you have a manageable amount of debt and are able to obtain a loan at a lower interest rate then it may be advisable. However, ensure you pay the cards off immediately but do not close the accounts (and refrain from using them as well or you will defeat the purpose!)

Answer 4

Taking out loans to pay off your credit cards only works if:

A) The interest rate in the loan is less than the interest rate on the cards.

AND:

B) You don't run up the balances again while you are paying off the loan.

Because many people can't resist charging things, I recommend they just pay them off, without taking a loan.

Answer 5

Hell NO! pay off you're debts smallest to biggest, after one is paid off roll the extra money over to attack the next biggest one until they are all paid off, the shred the cards and live within you're means. It is hard to do but rewarding to be debt free. Credit Cards suck! Ask a millionaire if he go rich from using credit cards or reward points and see what he says after laughing.

Answer 6

yes