shoegal21 Posted January 23, 2008 Share Posted January 23, 2008 To pay off high rate debts which would be better: Taking out a loan specifcally for 'Debt Consolodation' OR: Taking out 'Flexible Personal Loan' Both of these coming from my bank. Would it make a difference in which one I use? Which would be better? Thanks guys! Link to comment
Stinking Rose Posted January 23, 2008 Share Posted January 23, 2008 The one that offers you the lowest interest rate. Link to comment
shoegal21 Posted January 23, 2008 Author Share Posted January 23, 2008 It says they both start at 8.99% Link to comment
PixelPusher Posted January 23, 2008 Share Posted January 23, 2008 I don't know what each one entails as to positives and negatives. I'd make sure that they don't somehow negatively affect you credit standing. Either way... one trap that many peole fall into is that once their credit cards are paid off, they start buying on them again. Then they're left with a loan AND stuff on their cards. I suggest getting the loan, canceling the cards (or hiding them away from temptation), and paying them off. Link to comment
shoegal21 Posted January 23, 2008 Author Share Posted January 23, 2008 well thats what i intend to do. i intend on paying off the cards & cancelling them. i don't plan on getting any credit cards after that. i will just pay off the loan. i just don't know which one would be better for my situation ... if it even matters. Link to comment
adahy Posted January 23, 2008 Share Posted January 23, 2008 Generally, I agree with the lowest rate however read the fine print. The average American philosophy is: get into debt, then try to borrow your way out of debt. It's a terrible philosophy. Everybody seems to expect something for free. Get control over your finances...it's not how much you make, it's what you do with your money. If you stop spending long enough, you might start to accumulate wealth. Link to comment
shoegal21 Posted January 23, 2008 Author Share Posted January 23, 2008 I do live in America. Im confused as to what you mean? Link to comment
adahy Posted January 23, 2008 Share Posted January 23, 2008 I do live in America. Im confused as to what you mean? I misread...thought I saw UK. Duh! Link to comment
Stinking Rose Posted January 23, 2008 Share Posted January 23, 2008 Yes, it says that they both start at 8.99% but that doesn't mean you will qualify for that interest rate. How high are the rates with your credit cards? If you can pay them down and I am assuming that you want to pay them down, then just keep making payments more than the minimum. Link to comment
shoegal21 Posted January 23, 2008 Author Share Posted January 23, 2008 Im about to file for a loan through my bank. Im just concerned as to which one might be better. They both start at the same interest rate as I said above. Which I know I might not qualify for that low of a rate. My CC's are at high interest rates. That is why I want to take out a loan to get rid of them. Link to comment
Stinking Rose Posted January 23, 2008 Share Posted January 23, 2008 If your bank can offer a lower interest rate than your credit cards, go for it. But make sure to have your banker fully explained the conditions of the two loans so that you can make a proper and informed decision. Either is ok. Link to comment
adahy Posted January 23, 2008 Share Posted January 23, 2008 Im about to file for a loan through my bank. Im just concerned as to which one might be better. They both start at the same interest rate as I said above. Which I know I might not qualify for that low of a rate. My CC's are at high interest rates. That is why I want to take out a loan to get rid of them. Personally, I would not go further into debt. Going further into debt, to get a handle on existing debt, is not logical!! There isn't an easy fix, except to change your habits. I hate to suggest this, as I don't use credit cards - but, about 5 years ago my girlfriend did a balance transfer at 0% to a different credit card company. At the end of the 6 mo. period at 0% it goes way up, so she transferred it again to another company. I think she went thru 3 or 4 companies in the end...meanwhile, she did change her habits, but managed to escape a lot of the interest. She's now quite successful, as she learned how to manage money. I definitely wouldn't borrow more money!! Borrowing money got you into this predicament. Link to comment
adahy Posted January 23, 2008 Share Posted January 23, 2008 Oh, if you find some companies offering the 0% transfer, never use the card. Just go ahead and cut it up. ONLY make the monthly principal payments....read the fine print. It'll require some discipline and a change in spending behavior, but you can make it work for you. Link to comment
LBP Posted January 23, 2008 Share Posted January 23, 2008 I don't suppose a Home Equity Line of Credit is available to you? Link to comment
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