Debt consolidation loans are a great idea done thru a bank as long as you get a much lower interest rate and are at the point where you are not going to go right out and charge all the credit cards up again once they are cleared (but you did say old spending habits right ?). Can you imagine having high balances on your cards and having the debt consolidation loan over your head too [img]graemlins/scared.gif[/img]
Originally posted by Ish:
Man, I've been trying to formulate a plan to climb out of debt for a while now.
Between school loans and old bad spending habits on credit (mostly vinyl), I racked up a hefty little ammount of debt.
I am thinking of just applying for a loan and paying it all off with that and consolidating everything at a good APR.
I have looked into agencies that do this, and it seems shady and your credit rating goes way down.
I have always payed my minimums on time so right now my rating is decent.
Anyone have experience with getting a loan?
I am looking to find a decent bank here in chicago.
What I would do ( I am debt free except for my mortgage loan):
1. Have patience.
2. Shift the existing credit card debt to other cards with lower interest rates. Check http://www.bankrate.com/ for possible lower interest rate cards.
3. Sort all my debts\loans by interest rates then put any extra money I had toward paying off the one with the highest interest rate first while making the minumum payments on the others. When that highest interest rate one is paid off then I would take all the payments I was making toward that one and apply it toward the next highest interest rate one, and so on and so on.
Your student loans (good debt\ Excellent ROI) should have the lowest interest rates so I would save those for last. If not see item #3
(\\_/) <br />(O.o) <br />(> <) \"Swim at your own risk\"