[TrentWichman]

I have accumulated large credit card debt over the past few months, I am still current and have good credit however I want a debt consolidation loan to get everything down to one low payment as opposed to several medium payments to free up extra spending money each month. I was also curious how this would affect the credit cards I would be getting the loan to payoff and how it would affect my current credit score. Also, it is like a signature loan where they give me a check for X amount or pay off the credit card companies and have that show up on my credit report? Is this a good move for the freeing up money or is this going to hurt more than help?

[Justme]

TrentWichman

If you take a consolidation loan, you will have to pledge your property against the loan. In case, you default in making the payments, you might be at the risk of losing your personal property. Besides, you will have to pay the interests twice for the existing debt as well as for the new loan amount. I believe, a new loan won't be a good decision especially for paying off your past debts.

As you are comparing your options, try a consolidation plan to pay off your previous debts. This might be a better choice. You will be able to combine all your previous debts into one monthly payment at lower interest rates. This program will appear in your credit report showing all the accounts are getting paid off through this plan. Once everything is paid off, it will be removed from your file. This does not hurt your credit because your payments are done in anyway. Credit scores are hurt when the accounts are delinquent. Prefer a consolidation program rather than taking a new loan and therefore, multiplying your total debts. Review the benefits you will be getting in the consolidation program.

http://www.debtconsolidationcare.com/benefits.html

I suppose what I'm really looking for is more like a signature loan for the amount of my debt to pay off my current debt. Is this a common practice or is this something that I would have to search high and low for a bank that would do this?

[dcashwell3]

Personally, accumulating more debt to pay off debt is a HUGE no no.

I was also curious how this would affect the credit cards I would be getting the loan to payoff

It would pay them off but if you left the accounts open and continued to use them you would be in really bad shape.

how it would affect my current credit score

It definately wouldn't hurt to have all of those acounts paid in full.

Also, it is like a signature loan where they give me a check for X amount or pay off the credit card companies and have that show up on my credit report?

Most work like a signiture loan unless otherwise stated by the lender.

Is this a good move for the freeing up money or is this going to hurt more than help?

I think it would hurt. Again if you left the accounts open, technically you could use them again. So paying them off once and then running the balance up again would give you even more payments. I would try and am using a debt consolidation company. I pay them one monthly payment that I can afford and my bills get paid on time every time. I hope this helps you. :wink:

The intention here is to get the loan to pay off the accounts and then close the accounts. This being said, is this still a horrible idea and also what are some good companies I could look into that give these kinds of loans?

[dcashwell3]

No not a bad idea, but I think all debt is evil. :evil: But that's just my opinion. :wink: American General is the company that comes to my mind because you can do most of the paperwork online.

Where can I locate American General's website?

[dcashwell3]

Here you go.
loansfast.com/products/consumerLoans.htm

Link made inactive as per forum rules - Mike