My husband and I have about $25K in credit cards, auto loans, and student loans. I want to pay this off before our credit score is effected. We are considering a personal loan, if we get a decent intrest rate it looks like it can reduce our payment by over $200 a month. Am I looking at this right? I don%26#039;t want to make a rash decsion. Should I talk to someone at our credit union?
Is it a good idea to get a personal line of credit to pay off credit cards?
At least with a personal loan it will be a simple interest unlike a credit card where you end up paying interest on the interest. I wouldn%26#039;t put a student loan in the personal loan as the interest paid on a student loan is a tax deduction and the interest is usually lower then a personal loan. Also another idea would be a home equity loan (as the interest is tax deductible)...
I do agree about consolidating your credit cards to a simple interest loan.
Is it a good idea to get a personal line of credit to pay off credit cards?
If you can get a good line of credit at a low intrest rate through a reputable company-bank, then yes, i would say its a great idea. I did this many years ago, it worked out fine for me.
Is it a good idea to get a personal line of credit to pay off credit cards?
They only problem i see with that is if you fall behind on your personal loan, if you do get a decent rate that will be good since you said you have $25K credit debt and that interest is sky high 19%-25%. I would look into it but look at all your alternatives
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