If I have a balance on a card of $8,000, 9.99% APR, would it look better to get a debt consolidation loan?
by admin ~ January 16th, 2007 . Filed under: Personal Finance .
Andrew H asked:
I want my credit to still stay above average, but I cant afford to pay $1,000 monthly payments to get rid of the balance fast, should I get a personal debt consolidation loan for 36 months instead?
Sammy Koogler
I want my credit to still stay above average, but I cant afford to pay $1,000 monthly payments to get rid of the balance fast, should I get a personal debt consolidation loan for 36 months instead?
Sammy Koogler
January 19th, 2007 at 2:57 pm
If you want to get rid of this fast, then taking a 36 month loan doesn’t make sense, even if you could get a lower interest rate. That long length of time will cost you a lot in interest.
I would look for a 0% balance transfer card (see the website for suggestions) and transfer it to 0% card, preferably for 12 months. Then, if you pay $700 a month for the 12 months, it will all be paid off and you will not owe any interest. Research this plan carefully though. It only works if you make the payment every month on time. If you miss even by one day, the cc company will jack your interest rate up to a horrible amount.
January 22nd, 2007 at 10:55 pm
Do what you can do. Obviously the sooner you pay it off the LESS interests you will pay and so the LESS money you throw down the drain.
These
should charge you less than 9.99% APR