I currently have a personal loan which consisted of 4 credit card balances. I went right into my bank, spoke with a financial planner who got me a low interest rate personal loan which has a reasonable monthly payment and comes out on autopay each month. I'm saving hundreds as well as paying off my loan steadily.
I’m calling bull$#|+ don’t do this in my opinion if you take out a real loan you are signing your name to that cash loan the money you owe on credit cards is made up money they can’t magically print money and then give it to you with an outrageous APR that’s the shadiest thing in the world and they never should of been allowed into this country in the first place in my opinion tell stop paying don’t tell them anything just stop and when and if you end up in small claims court find and flaw in their case being it the littlest one ever and use that to be the straw to break the camels back my guess is they already know they lost and are just waiting for the people they have been robbing and enslaving to figure it out 😉 Good Luck out there either way as either road you choose will have its bumps and holes in it
Very true but when the Federal Reserve has left the punch bowl out for too long and the people are already drunk on free money what do you expect? And the punch bowl has been out since Greenspan (if that’s how you spell it lol) so it’s been a while there are generations who don’t know what Not Free Money is like so in my opinion you can’t blame them for doing what they have been shown
Place your cards in a plastic container filled with water, freeze it so if you really need them you can get them but you’ll have to wait until they defrost, giving you time to think about it. Remove the saved cards from all the online stores you use. Do not close the accounts.
We had $55,000. in credit card debt from helping our daughter in college. We went with a loan using our home that was paid off as collateral. This made it interest below 4% from 12+ . We are now down to $37,000. with no other CC debt so far. We also now have a good emergency fund in savings. The savings of over 8+ percent in interest covers a lot of the monthly payments on the loan. Just don't use the savings to buy more stuff. Allow yourself some money each month for fun so you. Good Luck
Yes, I’ve done this. I used a local credit union to do this as they have the lowest rates. My credit cards had interest rates ranging in the 19 to 25% range and initially my personal loan was 10.99%, but after 6 months my credit score went up considerably (~50 points), and I was able to refinance at 6.99%. I kept the same term and monthly payment though. This was the lowest rate they offered, and is quite competitive from what I’ve researched. My credit score was pretty good, and now it’s really good.
As others have said, the important and critical thing is not to fall right back into old habits: it’s easy to put non-essentials and superfluous charges on credit cards. For me the challenge was recurring subscriptions/membership payments, Amazon Prime and the occasional restaurant/bar tab. In my head I’d say that I’d pay these off when I made them but then I’d wait and they’d accumulate. Then something would come up like a car repair. And then I’d get stuck with a balance. The solution has been to change my subscriptions/memberships to come directly out of my bank account or use a debt card. I’ve also recently got a newer car and have tried to be better about actually
budgeting for car repairs (everyone should!).
Either way definitely consider the personal loan: the interest rates are much lower than credit card interest. I wish I’d swallowed my pride and stupidity sooner and got the stupid loan. Best of luck!
The thing is that you can't really get anywhere without a credit score. You can't buy a car, you can't buy a house, you can't even rent a house, car or apartment because even with a security deposit, they don't trust you with it. I've had a credit card for about six months now and never had a late payment or an outstanding balance. I treat it like it's my debit card; I don't spend more that I know I will have in my paycheck after bills. It's not smart to think of it as free money; you have to think of it as the tangible money you already have. If you start thinking of it as a separate sort of income, you won't escape it. You have to build smart credit habits in the beginning, because fixing your habits later is harder when you have to fight previous habits and then build new ones. Credit cards are essential in the economy that we have; however, knowing how to approach them and be smart with them is also crucial, and its a point where our education systems fail. Teaching young people early in life will protect them from the credit card companies that literally prey on them because the companies know that most young adults are uninformed, and continue to be through adulthood. They get credit cards or loans to pay off other credit cards or loans, and it just spirals. A good rule of thumb is not to spend what you don't have and to live within your means. There is no such thing as a little bit of money, so be smart about what you buy and when. If you want a candy bar and can afford it, get it, but if you have to depend on a credit card to get it and don't have the funds to back it up, don't get it.
I was in the same situation I ended up consolidating my debt through ClearhClear One Advantage <link removed>utm_source=fb&utm_campaign=criteo&adgroup=d&method=db&utm_medium=ldls. I opted for this vs loan and they will work with you on monthly payments expected. Great customer service and very informative, understanding, and encouraging when you need hope to see light at the end of the tunnel 😉