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Credit Card Consolodation Loan?
- Thread starter Matthew
- Start date
Well, how much of a rush are you in to pay these bills? If the cards are already disposed of, just pay them down on your own. Sure it may take a little time, but it's the best way to keep your "perfect" credit. Really, I don't think $7k is that big a deal. I'd be happy if we were $15k plus cars. When you get to 30 +, let me know. But good luck in whichever avenue you take this down.Matthew said:im well versed in the likes of credit and credit scores. im not planning on doing anything to hurt my credit in any way. my credit is currently perfect, i dont plan on ruining it...its not like i cant pay my bills.
Exactly..., 7k isnt all THAT bad. I would try to sell off anything that I dont absolutely need. May be a good time to clean your house or garage. You can always buy stuff back when you may need it in the future. Im not saying sell necessities but just things that you dont use..., you know what im saying. Every little bit will help. Also, try to change your spending habits. What I like to do is, If I really really want something, I think first if I can even consider to afford it. If I can afford it, I think how much I NEED it, then, since 8 times out of 10 I dont absolutely need the item, I just put the cost of it into my savings account as if I purchased it. In a month or so if I still remember it and absolutely have to have it, I know I can afford it, If not I usually forget about the money and my savings account goes up!
I know its dorky. but its kind of an accountability system I have for myself..., which would also explain why my car is still 99% stock. Ive learned there are more important things, future being one of them...
I know its dorky. but its kind of an accountability system I have for myself..., which would also explain why my car is still 99% stock. Ive learned there are more important things, future being one of them...
yea, i put a lot of money into savings, im not intersted in spending it though..i do have some stuff for sale cause im moving. but im also not going to sell stuff that ive bought and want/need. like i said, i dont have a problem affording my bills...im not trying to change my habits, because i enjoy how my wife and i live...we pay extra on all the bills anyhow, and i still allocate about 125 every two weeks for spending money for myself. im just trying to consolidate the credit cards into one, possibly smaller payment, and maybe a bit better interest.
msubullyfan
Yeah, I'm an engineer...
- :
- 2005 Nissan Frontier 4x4
Don't get a consolidation loan from a bank!!!!!!!!!!!!!!!
Use one of the non-profit credit counseling services. Not only will they get you a better loan, but they'll help you with financial/budgeting tips. Even if you don't think you need this, you'll be surprised at how much you can learn.
I've helped several friends get out of high-interest consumer debt. This is definitely the best way to go.
Use one of the non-profit credit counseling services. Not only will they get you a better loan, but they'll help you with financial/budgeting tips. Even if you don't think you need this, you'll be surprised at how much you can learn.
I've helped several friends get out of high-interest consumer debt. This is definitely the best way to go.
Nah man, I don't think you're going to catch a big break with a loan for the amount of debt you have. You took the biggest step in handling your debt by cutting up the cards. Now just pay them off one at a time, starting with throwing as much money as you can at the largest interest rate card. When you're done with that one, take that amount and throw it at the next largest, and so on, and so on till you're free and clear.
And if you can find a zero interest card that with atleast that credit line, jump on it. If you can throw atleast $700 a month at it, you'll be paid off in 10 months; lol, I wish I could have that kind of payment schedule.
And if you think putting a bunch of money in the bank is doing you good, its actually costing you money. The interest you earn in your savings acount is more than eaten up by the interest you're paying on your cards. If you're adamant about saving, take 10 cents of every dollar and throw in the bank; The rest use to pay off your cards. In no time you'll be in great financial shape, and your credit will be even more golden. (2thumbs)
And if you can find a zero interest card that with atleast that credit line, jump on it. If you can throw atleast $700 a month at it, you'll be paid off in 10 months; lol, I wish I could have that kind of payment schedule.
And if you think putting a bunch of money in the bank is doing you good, its actually costing you money. The interest you earn in your savings acount is more than eaten up by the interest you're paying on your cards. If you're adamant about saving, take 10 cents of every dollar and throw in the bank; The rest use to pay off your cards. In no time you'll be in great financial shape, and your credit will be even more golden. (2thumbs)
well i am building up my savings in case i ever get into an emergency. my wife and i always keep a minimum of 1000 no matter what comes up, that way we could both afford insurance deductibles if we were unlucky enough to both get into accidents...then we have another amount, which varies and is always updated about every 6 months...its always enough to sustain half of our bills for 6 months in the even that my wife was to lose her job or not find one when we move...the rest is for saving for a vehicle for my wife.
I'm telling you, for that little debt, a loan isn't worth it. In all honesty, how long do you think it would take to pay off your cards, starting with the next payment? Will it be longer than paying off a loan? What about interest? Credit counseling is for people like my wife and myself who pay $1000.00/month +/- toward cc's. Why borrow from Peter to pay Paul? I mean, in our case, we're borrowing from peter to pay off all of the Disciples! We're in a bit of a viscious cycle. You, Matthew, aren't. I understand you want to be rid of the debt ASAP, but if you get a loan, you'll still have "debt" over a period of time. Like rktktpaul said, start with the largest one, and work from there. IMO, it's your best bet.
I know that you said you don't want to do this but you really should take the money you have saved up and pay off the debit with that. Yes, it'll wipe out any money you have saved up but then if you have enough to pay it off totally you can take the money that you would normally have been paying and put it back in to savings. This is what I did right after my wife and I got married. We paid off everything and really built our savings back up and currently keep a $10000 average balance between the savings, checking and vacation accounts, pay cash for everything and keep one credit card for emergency use.
There is absolutly no reason to keep a savings account if you are paying interest on credit debt, you are basically losing money by doing so. I know that it feels safe doing so but you're better off feeling nervous for a short period of time than ending up with no money over a long period of time.
Something else to consider if you are moving to CA, the cost of living out here is much higher than in OK. Having any debt to pay off in addition to added living expenses is going to hurt even more. You'll be far better off having the least amount of debt to worry abaout as possible.
There is absolutly no reason to keep a savings account if you are paying interest on credit debt, you are basically losing money by doing so. I know that it feels safe doing so but you're better off feeling nervous for a short period of time than ending up with no money over a long period of time.
Something else to consider if you are moving to CA, the cost of living out here is much higher than in OK. Having any debt to pay off in addition to added living expenses is going to hurt even more. You'll be far better off having the least amount of debt to worry abaout as possible.
Matthew said:well i am building up my savings in case i ever get into an emergency. my wife and i always keep a minimum of 1000 no matter what comes up, that way we could both afford insurance deductibles if we were unlucky enough to both get into accidents...then we have another amount, which varies and is always updated about every 6 months...its always enough to sustain half of our bills for 6 months in the even that my wife was to lose her job or not find one when we move...the rest is for saving for a vehicle for my wife.
so you are paying a higher interest rate on your CC then you are getting on your saving account.....
Try these forums - http://fatwallet.com/forums/categories.php?catid=52
i know $7k isnt that bad, but to me it is bad. im not the type of person that like to owe anyone money, this is the reason i dont have a ton of mods on my car and why i have yet to finish school. at the moment, my current debt is about $300 total. you just have to be smart about the way you spend.
as mentioned earlier, if you want to buy something expensive, save up for it. if youcant wait that long, then open a credit card with one of those 0% intraductory rates and pay it off before it passes the trial period. i always shop for deals. im not saying go and buy cheap s***, just be smart.
for example, i wanted to upgrade my entire car audio system. i looked around and found what i wanted. when i went to tweeter, i applied for a tweeter card and was approved, but i didnt buy anything right away. a few weeks later, i got a flier saying "cardholders get no payments and 0% for 12 months." i blew a couple thousand, but instead of making no paymentsduring that twelve months, i divided the total by 12 and made monthly payments so that it would be payed off before the end of the no interest promotion.
my advice is to stop buying stuff for your car IMMEDIATELY!!! then, as rktktpaul said, chop away at them starting with the card that carries the highest interest rate. it will take a while, but it is the best way to do it.
as mentioned earlier, if you want to buy something expensive, save up for it. if youcant wait that long, then open a credit card with one of those 0% intraductory rates and pay it off before it passes the trial period. i always shop for deals. im not saying go and buy cheap s***, just be smart.
for example, i wanted to upgrade my entire car audio system. i looked around and found what i wanted. when i went to tweeter, i applied for a tweeter card and was approved, but i didnt buy anything right away. a few weeks later, i got a flier saying "cardholders get no payments and 0% for 12 months." i blew a couple thousand, but instead of making no paymentsduring that twelve months, i divided the total by 12 and made monthly payments so that it would be payed off before the end of the no interest promotion.
my advice is to stop buying stuff for your car IMMEDIATELY!!! then, as rktktpaul said, chop away at them starting with the card that carries the highest interest rate. it will take a while, but it is the best way to do it.
Stormtrooper77
Member
- :
- 2003.5 Mazdaspeed Protege
CC consolidation is good, especially if you have good standing credit. Your bank should be able to get you a far better rate than your CC company. Also have your bank reduce the limit on the ONE card that you intend to keep. Something like $1000. Better yet, get the bank to change that one CC to a low interest card. It may carry a yearly charge, but it's well worth it if you intend on carrying a balance. But I consolidated my $11000 in CC's into one loan paying bi-weekly. I finished that in 2 years. My current card still has the low $1000 limit. Without the consolidation, I would have never been able to purchase my MSP.
Good Luck!
Good Luck!
My 2 cents...Biggest and best thing you've done is cut the cards. There's no way to get out from under it if you still have the cards. You ALWAYS find an excuse to use them and you end up right back on the merry go round. My wife and I consolidated all of our debt onone credit card several years back. Talk to them about a low rate for 12 or 18 months if you transfer all your other balances. They'll work with you.
And like others have said...that's not a TERRIBLE amount of debt so don't get too depressed or anything.
Final thought, any parents or in-laws that might float you that much cash in return for a strict personal agreement to pay them back? Even if you pay your dad 3 or 4% you'll save a heck of a lot over a credit card company or a loan.
And like others have said...that's not a TERRIBLE amount of debt so don't get too depressed or anything.
Final thought, any parents or in-laws that might float you that much cash in return for a strict personal agreement to pay them back? Even if you pay your dad 3 or 4% you'll save a heck of a lot over a credit card company or a loan.
wow, good thread,
this cc company stuff is on my mind almost every day. I'm in the same boat as we moved, and bought a house and etc. etc. needed things like washer, vacuum cleaner etc.,,, and it just started to pile up on the cards. Now i keep feeling like i'm never going to get it sorted out, we owe about 17k (9k on one card and 8k on the other) so you're doin alright. I just hate giving up 400 bucks every month to them pricks.
I called around about debt consol loans, and i called some credit counselor places too. The loan was out of the question b/c taking out another loan doesn't sound like moving in the right direction after just gaining a mortgage. The credit place could lower my interest rate, but the monthly payment went up and we're tight every month as it is b/c of the new house and stuff.
I even thought of selling the PRO b/c i got 0% interest on it and could almost break even right now. Decided against it.
I ended up transferring my balances on the cards to 0% interest cards. Hopefully I can take out a big chunk this year. You might just want to try that and see how it goes..
good luck
Good luck dude, 7k in cc debt would be nice for me to be worrying about.
this cc company stuff is on my mind almost every day. I'm in the same boat as we moved, and bought a house and etc. etc. needed things like washer, vacuum cleaner etc.,,, and it just started to pile up on the cards. Now i keep feeling like i'm never going to get it sorted out, we owe about 17k (9k on one card and 8k on the other) so you're doin alright. I just hate giving up 400 bucks every month to them pricks.
I called around about debt consol loans, and i called some credit counselor places too. The loan was out of the question b/c taking out another loan doesn't sound like moving in the right direction after just gaining a mortgage. The credit place could lower my interest rate, but the monthly payment went up and we're tight every month as it is b/c of the new house and stuff.
I even thought of selling the PRO b/c i got 0% interest on it and could almost break even right now. Decided against it.
I ended up transferring my balances on the cards to 0% interest cards. Hopefully I can take out a big chunk this year. You might just want to try that and see how it goes..
good luck
Good luck dude, 7k in cc debt would be nice for me to be worrying about.
DooMer_MP3
Experience my Member
I got rid of my $5,500 in CC debt by taking advantage of the umpteen-million 0% balance transfer for X months offers I got. I basically had 3 cards with 0% for a year, and paid $400-$500 a month for a little over a year and was done. Still have to pay off car loan, and a small personal loan I used for an engagment ring, but I'm getting out of debt. Its evil.
Chris
Chris
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