Credit cards

[Sergdiaz]

Would it be a bad idea to take out personal loan to consolidate credit cards ? Would it affect my credit ?

[Carl]

It's only a bad idea if your intention is to incur more debt on the credit cards after paying them off with yet more borrowed money. Best thing you can do is cut up the credit cards, pay them off with whatever kind of consolidation loan you get, pay off the loan, then keep making those loan payments to yourself into an account for which you have a debit card. That way, you can still buy "like" you're used to with plastic, but you only buy what you have the cash to pay for at the time of purchase.

As for the credit, it won't hurt or help you. All you're doing is shifting debt around.

[Tdrake8686]

Need help getting my refunds on my debit card

[scottyp]

Yes because the personal loan rates are higher than the credit card rates just cut up the cards and pay minimum on lowest interest cards and pay the max you can on the highest rate cards

[MGraves]

Actually, it depends on where you get the loan. There are 3 factors to consider here. The first is, how much will I eventually have to pay in total? This is easily figured out by taking the principal, adjusting for states interest rates, and figuring out your payment duration. If getting a loan through a good financial institution, you should not be paying more than 12 percent on a personal loan... much less than most credit cards. The second is that too many inquiries in a short period of time CAN have a negative impact on your score, but these dings go away quickly, and are less damaging than those caused by missed/late payments. Last but not least, there is the short term flexibility increase. You can often get a loan with terms that mean you are paying off the loan paying the same amount total... or less... than you would have had to play to clear the credit cards, while STILL paying less per month than you were on your credit cards. In short, it is almost always a good idea to consolidate unless either a) your circumstances are way outside the norm, or b) you are going to keep using the cards.