Personal debt consolidation loan

Personal debt consolidation loan

Question by Acrobat: Will using a personal loan to consolidate cc debt negatively impact my credit score? I find myself in a bit of a pickle. My credit cards have high balances. Both cards combined total $ 23,000 (17,000 on one at 19% interest and $ 6,000 on another at 18% interest). While I try to pay more than the minimum due each month, I find myself unable to pay them down.....life has been getting in the way. I've contacted the cards and they refuse to lower my interest rate. I have thought to apply for a personal loan to consolidate this debt (hoping for a much lower interest rate than the cards offer) but I'm not sure if this is the best solution. I would like to be free of this debt within 3 years. However, I'm nervous to do anything that might negatively impact my credit score. My score is already lower than it should be b/c of the high credit card debt. I have established credit and have a history of paying bills on time but my score fluctuates b/w 550-565 b/c the cards have reached their limits. I need to revise my last statement b/c I saw an error. I am looking for a way to quickly eliminate credit card debt. I have two cards that are maxed out (totaling $ 23,000). This high debt is keeping my credit score at 650-665. My score should be higher b/c I have a history of paying my bills on time. I would like to eliminate my debt within 3 years so I can move forward and one day purchase a home. The cards will not lower my interest rates which are at 18-19%. I try to pay more than the minimum as often as possible but I feel like I am getting nowhere. Also, it's impossible to put any money into a savings account and paying extra on the cards. Will a personal loan help with my problem or is it a bad idea? I'm reorganizing my finances so that I can be debt free and ready to purchase a home within 3 years. Best answer for Will using a personal loan to consolidate cc debt negatively impact my credit score?:

Answer by sudi p
surely

Answer by zeke58
taking out a loan to pay down credit card debt is a popular way of getting out of that kind of trouble. It will consolidate your payments at a lower interest rate, thus making the debt easier to pay off. Plus, you will not be subject to the late fees and charges on ur cards. It would be a good idea to get rid of some of the cards once they are paid off. That will help your score. It will also help to have only one acct with a balance (your personal loan) as opposed to several credit cards. be careful with the loan that you get though. Make sure you get a fixed rate.

Answer by MARIA
If you always pay on time you should a better credit score, but consolidate your debts will no affect you credit score. You will have to be very careful, because usually people who consolidate debts do ok in the begining but in a while they start to use their crdit cards again and find themselves paying the loan and the credits cards. If you have decided to do this, try to include everything you owe, not just credit cards, you can do that, for example: You can consolidate ...credit cards ...loans you actually owe Before doing all this RESEARCH al least 10 institutions to refinance, have it all in writing. You can too apply to a credit card that offers a low interest, and move your balances to that one. Go to http://www.refinancemortgagebrokers.com/refinance.asp to see how much you can save consolidating you actual payments... Good luck

Answer by Jai
No

[using personal loans to consolidate debt]

DEBT CONSOLIDATION LOANS Bad Credit Debt Consolidation Bills and debts getting a little out of hand? Lower your monthly payments by consolidating them into one low payment. You can consolidate anything. Credit cards, car loans, personal loans, second mortgages anything and everything! We...

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CHICAGO, IL, Jul 09, 2012 (MARKETWIRE via COMTEX) -- Debt consolidation and credit card debt relief programs continue to be sought after today by Americans who find themselves struggling with or otherwise buried in personal debt such as that from ... Debt Consolidation, Credit Card Debt Relief and How to Get Started

Personal debt consolidation loans can be very helpful for people to get much. The fact is that once the debt is high in this country than people who are trying to reach some of the terrible losses during the big left in the economy. So people more and more loans, and turned as one who had no income. Now that the economy turns around a bit 'you see that these same people are also swimming in> Debt created it and can not resume all benefit from the services because all of their additional income will pay the debts they incurred during the lean times. This has some difficulty, given that bankruptcy is no longer a viable option for most people, created since the amendment of laws.

- Debt Consolidation Calculator

Personal debt consolidation loans are a popular method used to find some relief and that is good news for the entire population.

ByPersonal loan debt consolidation means that you get everything, a loan which in turn pay all your debts leaving you with a single payment of care, which will take place. Now the question is whether it is actually necessary to get a personal loan debt consolidation. This is really a question that you ask and the needs of business loans That offer is then look. It is not a service for everyone. People who seekwill come to have a single high interest bill is not likely to qualify for this service because it is not designed to care for a particular loan. What this is designed for those with income, there is no chance that their way clear in the near future a huge amount of debt at high interest is sucking all her. - Debt Consolidation Calculator

You should check with a credit counselor to determine if you are a candidate or not.

There is usually a jobSheet, these companies use to make a decision. This paper has accumulated leaf to see how much income they have, the more debt it is. From there, the company will make the determination.

http://www.debtconsolidationcalculator.goodarticlesite.com/personal-debt-consolidation-loan/

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