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Is it a bad idea to get a personal loan to pay off our credit card debt?

we've gotton behind on payments and are just stuck now and we don't want to risk doing the credit relief since I heard sometimes that's not the best idea.

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Anonymous

Asked by Anonymous at 9:59 PM on Jul. 1, 2009 in Money & Work

Answers (5)
  • It's a GREAT idea- IF you are cutting up your credit cards and canceling them. If not- then basically you will be paying off the loan consolidation, charging more on your credit cards- and before you know it you'll be paying twice as much towards debt than you were before.

    PM me if you want more information :)
    Erica_Smerica

    Answer by Erica_Smerica at 10:03 PM on Jul. 1, 2009

  • It just doesn't make sense to do this. You are taking out more debt to pay debt, not ideal. There is a book you need to read, you can get it for free at the library, it is called The Total Money Makeover by Dave Ramsey. It will help you step by step to get out of debt. There is also a great group on here called Dave Ramsey Fans. You can also go to www.daveramsey.com and read up. But the book is a definite. You don't need to be acquiring more debt, you need to learn ways to get rid of it. Good luck!
    slw123

    Answer by slw123 at 10:05 PM on Jul. 1, 2009

  • If you are getting rid of the credit cards (maybe keeping one for emergencies and just emergencies), then it can be a good idea. When you fall behind on payments many credit card companies will jack your interest rate. If you can get a personal loan at a lower rate that makes sense. Still paying the same amount of debt off, but with a lower interest rate. I don't see how that doesn't make sense.
    canadianmom1974

    Answer by canadianmom1974 at 10:20 PM on Jul. 1, 2009

  • It's a bad idea if you have to put up collateral for the loan.
    whistlemom3

    Answer by whistlemom3 at 11:41 PM on Jul. 1, 2009

  • My company will be launching a program very soon! Within the next month, so I'd wait. For working with them I get special discounts and one of the first things I did was go through Alliance. I was skeptical of a lot of companies because they all asked for thousands in credit debt to help me. I had smaller bills that just added up, some daycare, electric, old cells, etc. They got me way lower payments and helped me with all bills! Not just what they wanted! My debt added to over 6K and my payments are about $150 a month to be paid off within 20 months. They also gave me information about a past bankruptcy I had and credit checks! Contact me for more information!
    tcarter1981

    Answer by tcarter1981 at 3:58 PM on Jul. 2, 2009

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