This may be a novice question and i'm sure just a repeat from other threads however would it be quicker, or more efficient, to pay off my credit card debt by taking out a loan?

I have at least $14,000 in credit card debt (car fix ups, paying for school, books for school, etc). My discover card being the highest with the interest loans and fee's. I'm paying above the minimum but with everything else that i need to pay for, its basically throwing at debt that's barley making a scratch.

Figure if i take out a huge loan, throw that money at my cards and pay them off, i'll be able to have one payment to make which would be to a loan rather than three in which one half of the payment is actually used.

Any advice (serious advice) would be appreciated.

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Posted by VABuckeye

Naples, FL

Member since Dec 2007

35710 posts

Posted on 10/9/17 at 9:30 am to FieldMink

Say you take out a loan for this. If an unexpected expense comes up how are you going to pay for it? If the answer is to put it on a credit card and you can't pay it off when the statement hits then the loan is the wrong choice. You'd just be repeating the cycle that got you into debt in the first place and now you have the loan and more credit card debt.

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Posted by Joshjrn

Baton Rouge

Member since Dec 2008

27486 posts

Posted on 10/9/17 at 9:34 am to FieldMink

Have you considered simply transferring your balances to cards that are interest free for a period of time?

LINK

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Posted by ATLdawg25

Atlanta, GA

Member since Oct 2014

4370 posts

Posted on 10/9/17 at 9:45 am to FieldMink

If the weighted average of your current debt is higher than the rate you would get on the personal loan, then it would save you some money. However, I really doubt it would make a significant difference in how long it will take you to pay everything off. You're robbing peter to pay paul.

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Posted by lnomm34

Louisiana

Member since Oct 2009

12640 posts

Posted on 10/9/17 at 9:49 am to FieldMink

quote:
if i take out a huge loan

A lot of questions come to mind:

What is the interest rate on the card(s) and their respective balances?
What are the chances you'll get approved for a loan with your $14,000 in credit card debt?
What is your credit utilization looking like?
Are you maxed out (or close to maxed out) on the card(s)?
What is your income? How much are you able to put toward the debt each month? How long will it take you to pay it down?

This post was edited on 10/9/17 at 9:52 am

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