I have been accumulating debt over the past couple years
Date: Thu, 11/16/2006 - 21:40
I have been accumulating debt over the past couple years and the 0% intro rates on my credit caard have expired or are close to expiring.Through different missfortunes and purchases I have approximately $6,000 on 3 different credit cards. I make all of my payments on time and can keep up with the payments but I am not making a dent in the amount. I make approx. $40,000 anually.
I am considering looking into getting a loan to pay off my credit cards in the hopes that i can lock in a low fixed rate and not have to worry about hidden fees and missing payments on three different cards. I am not sure how to go about getting this loan or how much I need and at what rate.
I would appreciate any advise you may have and hope to hear from you soon. Thank you for your time.
24 yrs old
San Diego Ca
If your credit is in good standing, you may be able to get an un
If your credit is in good standing, you may be able to get an unsecured loan which would pay off your credit cards and leave you with a monthly payment on the new loan.
Suppose you can find a lender who will give you $6000 at 18% over 24 months; then your monthly payment would be $299.55.
Even with good credit, a lender won't go too low on the rate on a relatively small loan like this (as opposed to a $30K car loan), because then they don't make any money off it. You're not going to get them to give you 5 years to pay it back either, probably max 36 months.
Try some finance companies like American General or Wells Fargo.
I would suggest if you do choose to get a loan to payoff your credit cards, then cancel those cards once they are paid off. It is easy to keep them open "in case of an emergency" but unless you are very disciplined, you might end up charging them up again. Then you owe the loan, and your credit cards, and you'd be worse off than you were to begin with.
Another option.. Enroll into a debt consolidation program withou
Another option.. Enroll into a debt consolidation program without taking a new loan.
People with good credit scores will get lower interest rates. Those whose scores are low have to pay high interest rates for the new loan. And, finance companies like to offer loans to people with good credit.
In case your scores aren't good, taking a new loan won't make things better. Instead, go for a debt consolidation plan in which the existing interest rates with your creditors will be negotiated for a lower rate. Most late fees and charges are waived off in the program bringing down the total debt. You pay the consolidation company and they post it towards your creditors in the plan. Follow the plan with strict budgeting and you will be debt free without taking additional stress. You'll need to concentrate on your monthly payments set in the plan.
