cancel
Showing results for 
Search instead for 
Did you mean: 

Credit advice personal loan vs credit cards?

tag
Anonymous
Not applicable

Re: Credit advice personal loan vs credit cards?

In the future it would have been better to go get the loan for the purpose of renovating instead of running up your cards. You should avoid credit card debt at all costs, the interest rate is almost criminal.

Good for you for dealing with this while you are still able to get consolidation loans. Knock that debt down highest interest to lowest and cut your spending until that credit card debt is GONE.

Think this way: everything you buy is 30% more expensive because every dollar you can save is worth $1.2999 if instead used to pay that 29.99% card off.
Message 11 of 15
DebtSlayer-1
New Visitor

Re: Credit advice personal loan vs credit cards?

Having all these cards at/near their limit will bring your score down slightly. However, paying them ontime will increase your score. Since you have done the work and maxed everything out - I would now seek out a consolidation loan to pay them off and cut up two of them but DON'T close them. 

Message 12 of 15
Anonymous
Not applicable

Re: Credit advice personal loan vs credit cards?

With due respect, there seems to be underlying financial challenges affecting you beyond the credit cards..

Please address the root cause that's making you carry such a high debt or your house will be at risk since u said uyou just bought it.
Message 13 of 15
Anonymous
Not applicable

Re: Credit advice personal loan vs credit cards?

I had the same problem but since I had the new home my debt to ratio was to high for a loan so i to had to use my cc's for repairs, and repairs had to be done for home insurance purpose. I saw no way around it. Hope more information become available because now im trying to pay down cc cnat get a loan cause debt to high.

Message 14 of 15
molitar
Established Member

Re: Credit advice personal loan vs credit cards?

Like I stated the down payment was a bit higher than estimated due to the appraisal value coming in lower than expected.  The home was foreclosure and in short sale with nobody living there at the time.  The problem came in that the FHA inspector had missed such a major repair that needed done.  That is why the credit card got maxed out to get repairs done ASAP.

 

The home mortgage payment with insurance and taxes is over $200 less than rent for a smaller place.  Just going to have to have a tight belt for a couple more years like it took me the first time to pay down my debt.  I put almost my entire income tax return which usually around $1700.00 in paying them down each year.  I was really expecting to have a good $200 more cushion to breathe with but when we found the major floor repair that needed done where the sliding glass door is where the expense went.  Part of the wall and the floor board had to be joyced and replaced.   But one thing is I replaced the Sliding Glass Door for French Doors which is more secure and less likely to need repairs like a sliding glass door usually requires for the future.  I also replaced the laminate flooring that was bad with Vinyl Plank Tile that I installed myself to save expense so that it will hold up better with rain and such.

 

So I am paying just a little over what I was paying before for rent but now I own my own place and it's much larger for the 3 of us.

Message 15 of 15
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.