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Level 7

## Has anyone ever consolidated credit cards into a personal loan?

Hi! I am looking for advice on lowering my debt as it seems my credit cards keep rising up and up.  I pay off my min. balance very month but my balance only seems to go up and not down. I have 5 cards and I heard from a friend that I could get a personal loan to pay them off and then pay the loan. Curious if anyone has ever done this or it would something like this help me????

Thanks!

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Level 4

## Has anyone ever consolidated credit cards into a personal loan?

Yes. Your friend is correct, I have done this before with my credit union. You have to apply for a personal loan, they ask how much you would like or they obtain a copy of your credit report. Whatever is your total credit card balance, let's say \$5000 they pay off \$5000 and you make low monthly payments on the loan amount and in return your credit cards are at a \$0 balance.

Remember this is subject to approval from your bank.
Level 6

## Has anyone ever consolidated credit cards into a personal loan?

If you're having trouble paying off credit cards, a debt consolidation personal loan is a great way to go. They're lower interest and you can't continue to add to the balance with new purchases. The reason your credit cards seem to be going up instead of down is that you continue to accrue interest on the balance. To make things simple, I'll just throw out some realistic but imaginary numbers...

Balance: \$5000

Minimum payment: \$150

Interest: 14.99%

Without doing actual math, the 14.99% interest is applied to the balance at a specific point in time each month. Let's say that interest is \$50 based on the info above. Let's also say you make the minimum payment of \$150 that month. You would expect your balance to be \$4850, right? Well, without making ANY purchases, the balance on the next statement is \$4900, because they'll apply the interest to your balance before sending you the next bill. Make a purchase of only \$100 and you'll be right back where you started. In essence, you paid your balance down by \$100 and then gave the credit card company \$50 that month to maintain your debt.

If you're not familiar with this and really understand this, it's kind of an eye opener and can get a lot of people into financial trouble.

Credit consolidation loans (through a reputable financial institution and not one of those mailbox solicitors) can be a great way to reduce your debt. There's no surprise fees and you can't add debt on top of it. HOWEVER... and I can't stress this enough... the only REAL way to reduce your debt is to change your spending habits. The best way to do this? DESTROY YOUR CREDIT CARDS. The trap most people fall into is the one where they get a personal loan to pay off their cards, then go right back to using them because hey now there's plenty of room on the card for me to make this one purchase and then pay it off at the end of the month. One purchase turns into 2, then you take a vacation because your card can afford it. Purchases pile up VERY quickly, and the interest is VERY high. 6 months down the line you now have a personal loan payment and your credit cards are back to where they started.

Level 4

## Has anyone ever consolidated credit cards into a personal loan?

Yes. Your friend is correct, I have done this before with my credit union. You have to apply for a personal loan, they ask how much you would like or they obtain a copy of your credit report. Whatever is your total credit card balance, let's say \$5000 they pay off \$5000 and you make low monthly payments on the loan amount and in return your credit cards are at a \$0 balance.

Remember this is subject to approval from your bank.
Level 6

## Has anyone ever consolidated credit cards into a personal loan?

If you're having trouble paying off credit cards, a debt consolidation personal loan is a great way to go. They're lower interest and you can't continue to add to the balance with new purchases. The reason your credit cards seem to be going up instead of down is that you continue to accrue interest on the balance. To make things simple, I'll just throw out some realistic but imaginary numbers...

Balance: \$5000

Minimum payment: \$150

Interest: 14.99%

Without doing actual math, the 14.99% interest is applied to the balance at a specific point in time each month. Let's say that interest is \$50 based on the info above. Let's also say you make the minimum payment of \$150 that month. You would expect your balance to be \$4850, right? Well, without making ANY purchases, the balance on the next statement is \$4900, because they'll apply the interest to your balance before sending you the next bill. Make a purchase of only \$100 and you'll be right back where you started. In essence, you paid your balance down by \$100 and then gave the credit card company \$50 that month to maintain your debt.

If you're not familiar with this and really understand this, it's kind of an eye opener and can get a lot of people into financial trouble.

Credit consolidation loans (through a reputable financial institution and not one of those mailbox solicitors) can be a great way to reduce your debt. There's no surprise fees and you can't add debt on top of it. HOWEVER... and I can't stress this enough... the only REAL way to reduce your debt is to change your spending habits. The best way to do this? DESTROY YOUR CREDIT CARDS. The trap most people fall into is the one where they get a personal loan to pay off their cards, then go right back to using them because hey now there's plenty of room on the card for me to make this one purchase and then pay it off at the end of the month. One purchase turns into 2, then you take a vacation because your card can afford it. Purchases pile up VERY quickly, and the interest is VERY high. 6 months down the line you now have a personal loan payment and your credit cards are back to where they started.

Level 6

## Has anyone ever consolidated credit cards into a personal loan?

I've done it, and it works, but it only works if you get your spending under control at the same time. I used rocket loans, as they offered better terms than my bank.
Level 3

## Has anyone ever consolidated credit cards into a personal loan?

No, but I would like to, so my payment would be one freeing up my money
Level 3

## Has anyone ever consolidated credit cards into a personal loan?

No, but I would like to, so my payment would be one freeing up my money
Level 2

## Has anyone ever consolidated credit cards into a personal loan?

I consolidated about 30k in credit card debt into a personal loan through sofi, in a year i have paid off over 4k of it and improved my credit score by over 100 points. I feel like the number is coming down now instead of going up. The interest rate is at 11% which is lower then all of the cards the lowest rate was like 17 the highest 22. I feel like I made the right call it also made it easier for me to plan just one payment and be able to pay extra toward on thing instead of like 10. Hope this helps

Community Manager

## Has anyone ever consolidated credit cards into a personal loan?

Awesome to hear @darlingnnikki121!

How'd you learn about taking out that loan to make it easier? Any tips or things you'd change in the process you used?

Level 2

## Has anyone ever consolidated credit cards into a personal loan?

I am doing this right now. My loan is 0% apr for the first 24 months which will help me in paying off my debt while not having to worry about interest.

I can tell you that paying off my 6 cards with a loan has boosted my score significantly. As for the payments I have a 60 day grace period before I need to start. We have consolidated my amounts into one easy affordable payment.
Level 2

## Has anyone ever consolidated credit cards into a personal loan?

My credit is just fair, I just got a \$15000 loan through prosper, I did the 3 year payment is a little high of \$509 per month but still cheaper then what I was paying per month and my interest rate is 13% way lower then the credit cards I had
Check prosper.com it worked for me