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Debt consolidation

9/29/15 @ 10:17 AM
User since 3/23/07
Just looking for the best option to consolidate my credit card debt. I know there are some financial gurus on here so heres your chance to share some of your knowledge.

10/3/15 @ 3:12 PM
User since 10/14/01
Yes, I'd try to cut back on the balances, highest first. As posted, the real danger is if you consolidate or get a home equity loan and then inch the balances up again.

10/1/15 @ 7:13 PM
User since 7/4/05

9/30/15 @ 4:00 PM
User since 7/5/01
I would disagree with putting just a $500 limit on a credit card and just using that 1. Just as you get dinged on a credit report for missed payments, if you are utilizing all of your credit, you will get dinged for that. You just need to exercise self control or have someone help you with that. I believe if you are utilizing more than 20-30% of your credit, you will get dinged. Even if you don't carry a balance, it doesn't necessarily matter. I pay my primary card off in full each month and that is something that stood out to me on my credit report. Being not entirely satisfied with the rewards on my current card, I picked up another cards with a much higher limit instead of just getting a higher balance on my existing card. Kept the 1st card just to maintain a credit limit that I won't use, but now my utilization rates are much lower and credit which was already very good has begun a steady climb upward. Spending and payment habits didn't change, there is a part of this equation that is knowing how to play the game. There are some things with credit ratings that defy logic. I would recommend educating yourself on credit ratings or perhaps meeting with a credit expert/counselor who can give you a plan to navigate this as well as what you are doing for your budget/consolidation.

9/30/15 @ 3:59 PM
MEMBER since 7/9/12
Quit smoking weed and drinking!!!!!!!

9/30/15 @ 3:25 PM
User since 6/6/07
If I were you I would get my credit limit increased and keep on spending. If you cant pay it back I wouldnt worry to much about. Just remember to pay the minimum and keep getting your credit limit raised. If the United States government (Obama) can spend money like this there cant be nothing wrong with it.

9/30/15 @ 3:17 PM
swamp people
swamp people
User since 5/14/12
Agreed first things first stop spending, get rid of credit cards, keep one with a limit of $500.00 set by you, do not let them increase it. Depending how much you owe, and your credit rating is good, you can get a unsecured loan around 8.5%. Option two is a title loan ( for a vehicle that is paid for) using that title can be as low as 2.5%. The whole idea is to save money on a 22% credit card. Go for the shortest loan length that you can afford. I.e.example=if you borrow $10,000 @8.5% for four years you pay roughly $250.00 a month. Intrest equaled to about $1800.00 over 4 years. Thats about $40 a month in intrest. Just one example. Good luck.

9/30/15 @ 3:00 PM
User since 7/20/09
The home equity idea would make sense if you can control your credit card spending. Some can and some can't. People seem to be either one way or the other. I actually knew a person who was going to charge their tuition on a credit card. I should told them to ask for a refund on their education.

Its not a bad thing to use credit cards. I charge most things but always pay off the balance at the end of the month. So I carry a $0 balance forward and don't pay any interest. I mostly do it to have a single bill and I only charge my typical monthly expenses or what I would normally pay cash for. Most of my bills like electric, tv, internet, cell phone, etc. are online so I use it for those, paying them either way. With the rewards from my card we usually get $300 or so back each year. Free money if you can control your spending. I'm probably the type of person the credit card companies don't like, taking advantage of them. Wink

9/30/15 @ 12:51 PM
Phat Walleyes
Phat Walleyes
User since 3/31/15
If you're going to refinance your home, that could be possibly the best time to get it done.. I think you need equity in your home to do it. . Especially if rates are going to go up...

9/30/15 @ 12:39 PM
ol sarge
ol sarge
User since 3/8/04
First thing to do is put down the shovel and stop using the cards. Cut em up, put em in a tub full of water and freezer em. Anything to stop you from using them. Second, do not use the equity in your home to pay them off. Before you know it you will have run up the cards again and be in the same place you are now just with more debt. If you belong to to a credit union, check them out for a debt consolidation loan. You might be surprised at what the can do for you. Short of that, spend less, charge less, live on less. You might have to give up some toys to get right side up. Check out Suzy Orman. She really has it down. If you can't pay cash, you don't get it. With some time, sacrifice and a little luck, you can dig yourself out in a few years. Just don think that there is a quick fix. Oh, and do not cancel your credit cards. That will really tank your FICO score. Good luck and getting out of the debt cycle.

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