Paying them off right away should help your credit. At least in the debt to income ratio. If you just make the monthly payment you are going to pay almost double when all is said and done for each card. If you can’t pay one lump sum, the next best thing I’d suggest is making at least double the minimum payment or as much as you can to lower the balance as soon as possible. The only person benefiting from you making just the minimum payment each month is the bank, or who ever issued the credit card, because they’re making a lot of $ off of you over the course of time it takes to pay it off.
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Highly recommend you do that, you will not be sorry! I did it a couple years ago. With a loan you will get much lower interest rates than you probably get on the credit cards. I highly recommend using a credit union though rather than bank if you do decide to go this route. I got a loan from Wells Fargo to pay off my credit cards. Wells Fargo was only charging me17% interest. But my 13 credit cards all ranged from 19.99-29.99% so figured 17% was better than 20%+. After paying on that loan for about 7 months we opened up a savings at a credit union, (just needed to deposit $5 in the savings and keep it there to keep account open) so I called the credit union to see what terms were for personal loan through them and was able to get same $ amount with interest at 8%. My payments were almost cut in half and it amazes me how fast my balance continues to go down every month. I know how discouraging it is to feel like yourmonthly payment is just going to interest and the balance barely goes down if at all. I was so pleased I did the same with my car loan. The bank was charging me 18% interest and whenwe switched over to the credit union they did it with interest at 3%. And again, I’m amazed at how fast the balance continues to drop!
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