Debt consolidation question

[SabreKiller]

Anyone ever done it? My local credit union has signature loans at 7%. I owe about 9k total on two cards and the interest rate is 10%. Basically I'd save 3% in interest and get them both one one note. I've looked at my budget and think it would be easier to manage this way and could put more back in savings.

I've cut everything to the bone and don't use them much, primarily using debit card for stuff. If I don't have cash for it I don't buy it.

[Codie]

Anyone ever done it? My local credit union has signature loans at 7%. I owe about 9k total on two cards and the interest rate is 10%. Basically I'd save 3% in interest and get them both one one note. I've looked at my budget and think it would be easier to manage this way and could put more back in savings.

I've cut everything to the bone and don't use them much, primarily using debit card for stuff. If I don't have cash for it I don't buy it.

How much do you pay on the current CC balance monthly now and how long would the unsecured loan be for?

[southpaw]

Good plan if you DO NOT use any credit cards again. At least until you've paid off the consolidation. If you use cards you just freeing up more credit/more debt.

[Landrover]

Keep it simple.............pay off the cards and move on with life!!!

[SabreKiller]

I'm paying waaaaaay more than the minimum.

I'll save 3% in interest, one payment and done.

I have some automatic drafts on one like my gym payment, car wash, and a life insurance policy. That's it.

[HoustonHunter]

If you put them both side by side and compared them, based on a 24 month payoff, you'd save ~$300.00.

You could potentially save yourself a few hundred bucks. Up to you if it's worth moving it all around.

Have you talked to your credit card companies to see if they'd lower their rate? Warn them you are thinking of leaving for some "lower % card" and see if they budge. Worst they can say is no.

[SabreKiller]

I'm looking at 18 months at 7%.

One of them is my Cabelas Visa. Ain't no way they'll budge. Besides, I like the points!

[Codie]

I'm looking at 18 months at 7%.

One of them is my Cabelas Visa. Ain't no way they'll budge. Besides, I like the points!

without knowing how much you are paying on your card now monthly there is no way to know if you are making a smart move or not. If the payment you are making is going to take you 2 1/2 years to pay the balance off then yes it would be worth it, but if they are both going to pay off around the same time then as HoustonHunter said it would only save you somewhere between $10-$20/month roughly. That is not enough $ savings for me personally to have to deal with moving stuff around. Add another 0 onto that monthly savings and it becomes worth the hassle in a hurry

[Charles]

I'm paying waaaaaay more than the minimum.

I'll save 3% in interest, one payment and done.

I have some automatic drafts on one like my gym payment, car wash, and a life insurance policy. That's it.

What is waaaaay more?

Are you doing a monthly budget? If not, I highly recommend starting. This will tell you where you're spending your money and help make cost cutting decisions.

Good luck

[deerplanter]

Are you willing to cut up the cards after you change over? If you are not then you are just spinning your wheels, I've seen other people do this and end up with a loan and more CC debt. I'm not saying it happens to everyone or to you but it does happen. Look up Dave Ramsey and see how says to pay off debt, I don't agree with all he says but you get the general idea.

[tvc184]

I'm looking at 18 months at 7%.

One of them is my Cabelas Visa. Ain't no way they'll budge. Besides, I like the points!

What drags credit card payments out is the minimum payment. If a person is paying the minimum, it stretches out for years and years.

You say that you are paying well over the minimum. If so and you continue at a constant rate, it will probably save you a little bit over 1.5 years but it won't be much. I guess anything is a help however.

I ran both on internet loan calculators (for what they are worth) for a personal loan and a credit card payoff. A $9,000 loan at 7% comes to 18 payments of $528.

Paying $528 per month on $9,000 in credit charges at 10% would cost about an additional $244 to payoff.

The trap in credit cards (which you aren't doing apparently) is that minimum payment. When the minimum payment goes down, people living check to check keep paying that minimum amount. Running at the minimum for $9,000 takes about 10 years and another $2,000 to pay it off. That is where you lose the money, in the long running minimum payments. I am not in the financial industry but I am assuming that those companies are in love with minimum payments. I am also assuming that if every person paid off their credit card each month, those companies would soon be out of business.

They are loaning you money hoping that you can't pay it off in 3 weeks.

In my opinion.

[Artos]

Good work, I can tell you becoming debt free is a very liberating feeling & something everyone should strive for...snowball those payments you are using for the CC's & put those same payments towards your other debt until it's gone.


I really like these threads & hope it encourages others to do the same..

[duckmanep]

If you have the self control and good credit... Get a new card that offers a 0% balance transfer for 18 months, pay the 3% transfer fee, then pay that sucker off within the 18 months.

[SabreKiller]

I've been debt free before. These are just expenses from my divorce. I've got a budget and stick to it pretty well. I'm just looking to make it easier to manage with one payment for the existing balances and then any new charges will get paid off monthly. Those will be minimal. Plus I'll be able to put more back or add an additional amount to the loan payment and apply it to the principle.

[TTORA]

If you have the self control and good credit... Get a new card that offers a 0% balance transfer for 18 months, pay the 3% transfer fee, then pay that sucker off within the 18 months.

this right here and cut up the other 2 cards....