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Quicker way to pay off credit card dept question
Posted on 10/9/17 at 9:26 am
Posted on 10/9/17 at 9:26 am
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.
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.
4
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.
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.
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
Posted on 10/9/17 at 10:03 am to lnomm34
Great questions there.
Posted on 10/9/17 at 12:28 pm to lnomm34
The $14k is an accumulation of the three cards. Card one = $5,100 ($4,601.06 spent). Card two = $4,000 ($3,536.37). Card three = $7,500 ($4,983.97).
I pay all of them accordingly but moreso the $7,500 due to it having high a fee and interest charge. The other two are with my bank in which the interest and such as lower. It would take a shorter time to pay off the small one but with the $7,500 that makes it harder.
I pay all of them accordingly but moreso the $7,500 due to it having high a fee and interest charge. The other two are with my bank in which the interest and such as lower. It would take a shorter time to pay off the small one but with the $7,500 that makes it harder.
Posted on 10/9/17 at 12:32 pm to lnomm34
Chance of me getting approved isn't too bad. Credit score is pretty good, only bad hit is due to not having a lot of credit available.
Haven't thought about the utilization yet.
Close to maxed out. Do not touch the cards. Just make the payments
Income is middle class range ($75k-80k depending on work load). At least $700 but thats split depending on bills and other amenities.
At the rate im going, it'll take about 3 year to pay my largest debt off
Haven't thought about the utilization yet.
Close to maxed out. Do not touch the cards. Just make the payments
Income is middle class range ($75k-80k depending on work load). At least $700 but thats split depending on bills and other amenities.
At the rate im going, it'll take about 3 year to pay my largest debt off
Posted on 10/9/17 at 12:51 pm to FieldMink
Can you afford to dump a couple extra hundred on each payment? If you can and you don't use the cards you'd be amazed at how quickly the balance will drop for you.
Posted on 10/9/17 at 1:13 pm to FieldMink
first of all, several loans will rquire you to close out you credit cards. So, you will have to consider that.
When I ran into some credit card problems during and right after college; I would often look for the 0% balance transfer cards and use that to avoid interest. When those weren't available I would pay minimum on all but 1 and put the entire amount I could afford that month towards the card w/ the highest interest rate.
Took about 1 1/2 years, and having a heavy Ramen Noodle based diet, but I was able to get ahead and haven't looked back since.
When I ran into some credit card problems during and right after college; I would often look for the 0% balance transfer cards and use that to avoid interest. When those weren't available I would pay minimum on all but 1 and put the entire amount I could afford that month towards the card w/ the highest interest rate.
Took about 1 1/2 years, and having a heavy Ramen Noodle based diet, but I was able to get ahead and haven't looked back since.
Posted on 10/9/17 at 1:53 pm to FieldMink
Keep this in mind, the bank that approves you for the loan will likely make closing the cards a condition for them being willing to pay them off.
It could negatively impact your credit score in the long run
Just throwing that out as something to consider
It could negatively impact your credit score in the long run
Just throwing that out as something to consider
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