Credit Cards Consolidation
Hello Terry,
I have two credit cards with an open balance. Both credit cards total $8,000. My questions are; Should I consolidate these cards in the following ways… 1. Move the balance of one card to the other so I can only make one payment? 2. Take a loan from a company like Lending Club and pay off both cards?
Also, do you think a loan from Lending Club is best in regards to interest, or a personal loan from my bank. I hear it is difficult to get a personal loan from the bank because there is no Collateral.
Terry Says
You are correct in trying to repay the balances on these cards. But your bank will never give you a loan.
Here’s the “secret formula” to paying down a credit card balance. Try it with the highest rate card first, then do the other one.
Take the current minimum monthly payment — double it — and write that amount down.
Pay that same amount every month — the amount you wrote down — and
Don’t charge another penny.
The balance will be paid off in less than 3 years.
Keep paying the minimum on the other account — the current minimum for that card — unless you can pull of this trick with both cards at the same time.
How do you get the extra money to do this? Get another job — weekends or evenings – as a wait staff or a driver for Uber or something to earn extra money to pay these cards down.
Anything else is just shifting deck chairs on the Titanic!!
