loan to pay off CC debt | TigerDroppings.com

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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12560 posts

loan to pay off CC debt


I have 2 credit cards with a total of about $11,000 on them that we had to use while the wife was on short term disability for awhile.

I can only make the minimum plus maybe an extra $20-25 a month.

would it be better to get a loan and have a set amount each month with a low interest rate to pay them off or keep up and try to pay a little extra when I can.

CC interest rates I believe are 13-19% range.

Discover card and a chase disney visa card.







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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18801 posts

re: loan to pay off CC debt


Anything you can do to lower that interest rate is OK in my book.

Are you able to get a CC that has a 0% introductory offer for 6 months or so? That's another option but it is admittedly temporary.

Sounds like you are only paying $50 a month on the cards. That comes out to 18 years without interest to pay them off. In which case, you have an income/expense problem on your hands and may need a second job. In any event, you can't keep paying $50 a month on a 20% interest rate on $11,000.

Some here have mentioned using a HELOC, but I've never owned a home so I wouldn't know how to advise you on that.

Sorry to hear about the circumstances that caused the situation. When you are able to get back on your feet, this is the kind of situation an emergency fund could help alleviate a bit in the future if you didn't have one, but this sounds like it was a pretty major hit.

Good luck.



This post was edited on 2/8 at 1:02 am


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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12560 posts

re: loan to pay off CC debt


I pay the minimum and then I add a little extra to it each month.

I just hate seeing over half of what I pay each month getting eat up the next month in finance charges.

Yeah unplanned medical problems always seems to happen just about the time we start to make serious head way financially.






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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
7226 posts

re: loan to pay off CC debt


I would get an extra job, sell any non-necessities for money (guns/boat/ATV/anything like that of value).

I'd cut cable and go bare bones cellphone service. Cut any fat whatsoever. That would let you put an extra $200+ toward the debt.

If you can transfer to a no/low interest card, it's a no-brainer.






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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6303 posts

re: loan to pay off CC debt


Can you pay the 19% with the 13%?





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mightyjet
LSU Fan
New Orleans, La
Member since Nov 2007
375 posts

re: loan to pay off CC debt


Depending on your credit history..check out Lending Club





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tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4737 posts

re: loan to pay off CC debt


as stated above try these things

1) apply for a card that offers an introductory interest free period on transfers

2) cut back on luxury items. Cheaper cable/cell phone/internet. Eat out less, bring your lunch to work if you can.

3) work on paying down the card with the highest interest first if you you can't do step (1)

4) for long term check into o home equity line of credit, or a signature loan at a credit union with lower interest rates than your cards.

5) find extra cash, garage sale, part time job, side work, ect.

I understand your pain. Years ago i was hit with a medical issue myself that hit hard financially

1-2 years of working in lean mode and you can get it all past you. Sooner if you can really push it.






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KG6
LSU Fan
Member since Aug 2009
2463 posts

re: loan to pay off CC debt


quote:

1) apply for a card that offers an introductory interest free period on transfers


Seems to me like you may have a hard time getting approved with so much debt already out there.

I wouldn't turn to one of those credit consolidation companies. I know someone whose credit was severely screwed up because the consolidation company was consistantly late on payments to the card company.

It sucks, but you just have to cut back as much as you can and pay as much as you can. If you can get a lower interest loan/card, I'd go for that. Balance transfers usually come with a charge even if it is 0% interest.






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Duckman13
LSU Fan
Tiger Stadium
Member since Dec 2006
2820 posts

re: loan to pay off CC debt


you need to take a dave ramsey course





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756
LSU Fan
Member since Sep 2004
9580 posts

re: loan to pay off CC debt


You do not want to exchange unsecured debt for secured debt

Get another revenue stream and focus on paying the cards off






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