topic Re: Personal loan in Personal Finance

Personal loan

Sbrooks1 — Fri, 06 Jan 2017 00:05:18 GMT

After I hopefully am able to buy a home, I was wondering if I should try and secure a personal loan for 14000 in order to pay the IRS off and not have that monthly IA payment 450.00. I'm thinking payments less but increases the time frame. Thoughts?

Re: Personal loan

IOBA — Fri, 06 Jan 2017 03:07:49 GMT

Are you on a payment plan with the IRS?

The IRS does like to be paid as soon as possible. And they like big chunks of money. But they are relatively slow about removing stuff from the credit report. You would need to get a letter from the IRS stating that the debt has been paid in full.

As for a personal loan, is it with family/friends or with a bank?

Re: Personal loan

Sbrooks1 — Fri, 06 Jan 2017 03:20:32 GMT

Yes , I have been on a payment plan for several years , original owed was >40000, there is nothing on my credit report. My question is would it be possible to get a personal loan and pay off over 4/5 years vs the 2 years I have left at 450 month with the IRS.

Re: Personal loan

Sbrooks1 — Fri, 06 Jan 2017 03:21:44 GMT

Simply trying to lower my monthly expenses vs sucking it up for two years and being done

Re: Personal loan

IOBA — Fri, 06 Jan 2017 03:31:46 GMT

In my opinion, pay off the IRS as quickly as you can.

If you can afford to make more than the agreed upon $450, then do it.

I think you are better off paying the IRS off quickly versus getting a personal loan to pay off the IRS. Why drag out the pain and pay more in interest?

Re: Personal loan

SouthJamaica — Fri, 06 Jan 2017 04:15:31 GMT

@Sbrooks1 wrote:
After I hopefully am able to buy a home, I was wondering if I should try and secure a personal loan for 14000 in order to pay the IRS off and not have that monthly IA payment 450.00. I'm thinking payments less but increases the time frame. Thoughts?

It depends on the quality of the loan. If you can get a nice low interest loan from a credit union, yes. Otherwise, no.

Re: Personal loan

Anonymous — Sat, 07 Jan 2017 17:17:33 GMT

@Sbrooks1 wrote:
Yes , I have been on a payment plan for several years , original owed was >40000, there is nothing on my credit report. My question is would it be possible to get a personal loan and pay off over 4/5 years vs the 2 years I have left at 450 month with the IRS.

If you qualify for a really good interest rate, it may be worth looking into. The downside would be extending your payments beyond 2 years.

Are you looking for a personal loan because the $450 monthly payment is stretching your budget? Or are you purely trying to save on interest?

Good luck!

Re: Personal loan

Sbrooks1 — Sat, 07 Jan 2017 17:34:45 GMT

I was thinking just to pay less interest and relieve the budget but I'm just gonna stick it out with the IRS and be done with it!

Re: Personal loan

Anonymous — Sat, 07 Jan 2017 17:48:36 GMT

@Sbrooks1 wrote:
I was thinking just to pay less interest and relieve the budget but I'm just gonna stick it out with the IRS and be done with it!

I think reducing the amount you pay in interest is a good idea, but I wouldn't extend the current debt beyond 2 years. If you can find a loan for 2 years with a sweet interest rate, go for it. You save money and get rid of your IRS debt. It's a win-win!