Personal Secured, Installment Loan to Pay Down CC Debt?

[DI]

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@Anonymous wrote:

OK, so I talked with the loan officer again and he said the term could be reduced to 3 years instead of 5.5?

Would this make the loan any better?

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Did the loan officer lower the rate?  If you really need to take this route, and  think you can double up on the payments every month, and there's no penalty fee for early payoff, its something to think about.

Smith- I wouldn't take on any additional loans during these trying times.  During a recession its time to pay off things as much and quickly as possible.   Take a look at your budget and see what you can temporaily cut until the CC's are paid in full.  

[Anonymous]

OK, I am all about "signs".  I work in HR and  just recieved a garnishment for one of our employee's from Wells Farga Finance.  The same palce that I am wanting to get this loan from.  I think this is a sign that I should buckle down and do this on my own!!!

I think I would have more satisfaction doing it my way, once this is all over.

[DI]

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@Anonymous wrote:

OK, I am all about "signs".  I work in HR and  just recieved a garnishment for one of our employee's from Wells Farga Finance.  The same palce that I am wanting to get this loan from.  I think this is a sign that I should buckle down and do this on my own!!!

I think I would have more satisfaction doing it my way, once this is all over.

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Consider it a lesson learnt, and handle it yourself. At the end you will look back and not want to repeat the sacrifices you had to go through to pay the cards off.  That alone should deter you to be more sensible with CC's.  If you don't have a budget create one.  You can use MS Excel to create a simple budget.    

[cobaltnv]

A loan to consolidate your cc balances is not a bad idea. However, 17.5% is probably not worth it for you. I would do as others have suggested and look around at other places (credit unions for example). You might also look into places like lending club where you may be able to get a better interest rate. If you have reasonable FICO scores I would think you could get a loan for 15% or so. I would not worry about the term of the loan. I wold determine how much $$ you can put towards the balance each month and pay that (hopefully it is way above the minimum loan payment)

Good luck 

Message Edited by cobaltnv on 07-30-2009 04:36 PM

[Anonymous]

What is lending club?

[cobaltnv]

lendingclub is a web site that provides personal loans to individuals. These loans are funded by groups of individuals who each contribute $25 or more toward the loan. The interest rates on lending Club are reasonable (normally) and are for three year terms.

Cheers 

[Anonymous]

Unless you are ultra-prime credit, LendingClub rates will vary in APR lower range of 13.5% and up.

Your best bet is a Credit Union.  If you don't qualify for an unsecured loan, maybe they would consider a refi cash out on your car too.  See if you have a local one that you can sit down and discuss a financial strategy on getting these debts paid off and wanting to reduce the interest portion of payments.

Debt eliminator plans work great.  Debt eliminator plans with lower interest work even better.

If you are going to do a consolidation loan, sock drawer your credit cards and get a budget.  Only use credit cards as debit cards (for cash purchases that you will PIF end of month). 

Also, you might call your CCC's and just ask for an APR reduction.  Some may do so.  If they will, this may reduce your loan needs.

You could look at a possible BT card to apply for.  I would suggest looking at NFCU (if you can qualify for membership) or Addison Avenue Credit Union (must join Financial Fitness Association $5 to qualify).

NFCU has rates as low at 7.9 and Addison has rates as low as 5.24.