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[scorepower]

We have approx $35k in credit card debt.  We have been approved by BofA for that amount to consolidate that into a loan for 11.9% at a fixed rate.  Currently we pay minimum payments on our credit cards but are attacking it one at a time.  I haven't ran the numbers to see how long it would take me to pay all this off but will later on tonight.  By consolidating we will save about $150/month.  My questions is all of our cards are at either 10 or 11% interest.  With the loan, we will pay around $600 a month and be done paying it off in 7 years.  I have to really play with the numbers to figure out which route to take but from other folks experience, i'm curious if there is benefits to doing this.  Thanks 

[athensguy]

The minimum payments on an installment loan are going to be higher than on your CCs, but as long as you can afford the new payment and keep enough discipline to not run up your CCs, that consolidation loan should be beneficial. It will increase your credit score, and your debt will be paid off more quickly.

[Anonymous]

Not sure how you would be better off here.  All of your cc's are at 10 or 11%, but the loan is at 11.99%?  That's going backwards in the amount of interest you will pay.  It also offers up the temptation of using those credit cards now that they have no balance on them.  Really the only benefit I see is the lower monthly payment if you are really strapped for cash, but since the rate is higher you are better off continuing the way your are if you can handle the payments.

Seems to me you would be better off calling your cc's and seeing if you can do some balance transfers (at much lower rates than 11.99%).  Get it down to 1 or 2 cards at 4 or 5% and you will be much better off than this scenario (in my opinion).

Good luck, I hope it all works out for you!