Debt Consolidation
I am trying to figure out the best way to consolidate our credit card debt. We want to make a five year loan with a better interest rate then our cards. I am not sure what bank to even start with? we need a 30,000.00 loan on 5year term. Can you recommend if we should go with a bank(PNC) or a credit card company loan (discover).
I figured we would start with PNC because we just paid our car loan off we had with them.
Terry Says
You can try for a personal loan, but if you have a problem with credit card debt, that is not going to be so easy. Just because you paid off a car loan, does not guarantee they will be willing to make you a personal unsecured loan!
I would recommend, rolling over the debt from your highest rate card to a balance transfer card with a rate of zero percent for one year. Search here to find one: https://www.creditcards.com/balance-transfer/
Then be sure to pay down the balance asap — using the money left over from the no car payments! If you still have a balance at the end of the grace period, your rate will jump to 29% or higher! Out of the frying pan and into the fire!
Do this with each card — ONE AT A TIME — while continuing to make at least the minimum payment on the other cards.
OR — double the current minimum payment on each card, and pay that same amount ever month (double the CURRENT minimum, not the new minimum). Don’t charge another penny and that card will be paid off in 3 years. Try that strategy with at least one or two cards, while doing the balance transfer with the highest rate card.
Please write back in a couple of years and let me know how it feels to have paid off all your debt!
