You can often get a personal loan at a lower interest rate than you are paying on your credit cards so it makes a lot of sense PROVIDED you do not use the cheaper credit to spend more. It is a temptation. The fact that you have outstanding credit card balances suggests you may give in to temptation more than you should so you need to be disciplined about it. Unfortunately, that is exactly what a lender will see when you apply for a loan. That makes you look like a bad risk, which means you will pay a higher rate of interest than someone who looks a better risk.
The truth is that it is easy to get a cheap loan if you are the sort of person who really does not need one.
If you go along with a repayment plan to show how the loan will clear your credit card bills and how you will be able to repay the loan from some of what you would have been paying the credit card companies, they are more likely to take you seriously. If it is obvious that your outgoings need to exceed your income (which is how we get into credit card debt in the first place), you may find it harder to get a debt consolidation loan … but it is still worth a try as long as it is cheaper than the card interest.
You sound like a good money manager who had some bad luck (the flooded house) so a HELOC – home equity line of credit loan – would be very smart in your case. Lower that 20% cc rate down to (say) 5% apr. [15% saved on $5000 is $750 – which then goes against the HELOC loan (if you wish to speed up the pay off).]
Maybe, maybe not. Depends on the difference in interest rates. With a lot of outstanding debt, and few late or missed payments, you may not be able to get a loan at any interest rate. Is your credit score good enough to get an unsecured personal loan?
if you can pay off the credit cards all of which are probably a higher interest rate than a bank loan, it sounds like a good idea
but that means you don't run up the cards again when they are paid off, in fact destroy all but one of them and use it only for what you can pay the next month
You don't get out of debt by borrowing more money, you just change who you owe, no it is NOT a good idea. Personal loans are difficult to get and if you have high credit card debt, you wont' get one,
Can be, if the interest rate is lower. The danger though is that many people then charge more to the cards and get themselves even deeper in debt – if you do that, it's a real bad idea.
It could be if the interest rate on the loan was considerably less than the interest on the credit cards.
It is smart if the interest rate and assorted fees for your loan are lower than those for the credit cards.
The smartest thing is to use credit cards like debit cards. Don't spend money you don't have.
If you can end up paying less in interest, sure. But unless your cards have huge APRs, it might not be worth it. The smartest idea of all is to get a second job.
Get a quick loan today from a trustful and reliable company via: email@example.com