How does one get an *ACTUAL* credit card debt reduction loan?

[Anonymous]

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@Anonymous wrote:

I thought about doing that, but knowing me as only I do, I would have only ever made the minimum payment.

I will keep it in mind as my discipline with spending improves though.

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Have you created a budget yet? 

[Anonymous]

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@Anonymous wrote:

With all the money you are saving by consolidating your debt, why did you stop your 401(k) contributions? Did you take out a hardship loan which requires you to stop contributions? I know some plans require it.

It may be a good time, if you don't already have one, to look into a high yield savings account you can park all your extra savings for an emergency fund.

I know one of the issues folks disscuss on MF is about incurring more credit card debt after a consolidation loan. 

Best of luck to you!

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I have other debt that doesn't report on my credit (debt to family members) that I owe, so I'm paying that down with the extra.

I've been contributing some to a microinvesting platform called Acorns. It has better yield than even a high-yield savings account, and while yes it has more risk, I'm young enough and the balance is small enough right now that I can stand to lose it. If the balance gets high enough to actually be worthy of becoming a true emergency fund, then I will probably pull it out and put it into a high-yield savings.

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@Anonymous wrote:

Have you created a budget yet? 

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Not yet, but I have an app that was recommended by a friend to help with that. I need to find the time to sit down and actually play with it.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

With all the money you are saving by consolidating your debt, why did you stop your 401(k) contributions? Did you take out a hardship loan which requires you to stop contributions? I know some plans require it.

It may be a good time, if you don't already have one, to look into a high yield savings account you can park all your extra savings for an emergency fund.

I know one of the issues folks disscuss on MF is about incurring more credit card debt after a consolidation loan. 

Best of luck to you!

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I have other debt that doesn't report on my credit (debt to family members) that I owe, so I'm paying that down with the extra.

I've been contributing some to a microinvesting platform called Acorns. It has better yield than even a high-yield savings account, and while yes it has more risk, I'm young enough and the balance is small enough right now that I can stand to lose it. If the balance gets high enough to actually be worthy of becoming a true emergency fund, then I will probably pull it out and put it into a high-yield savings.

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@Anonymous wrote:

Have you created a budget yet? 

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Not yet, but I have an app that was recommended by a friend to help with that. I need to find the time to sit down and actually play with it.

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Okay.

[Anonymous]

Just an update for this post.

I was never able to get an actual personal loan for saving on interest rates that CC's charge.

I paid all debt down manually.

Now they are sending mailers like crazy now that I don't have any use for their products. Most are still junk though since they "pre-compute" interest and then claim that they have "no pre-payment penalties". Very deceptive! 

[Anonymous]

Congrats on paying off all your debt! That’s amazing! 😁