Ask Terry Questions Personal Loan/Credit Card Debt

Personal Loan/Credit Card Debt

By Terry Savage on September 07, 2018 | Credit/Debt

Hi Terry,
I hope you can help me figure this out.
My husband had to have some expensive dental work done. We thought the process was going to start right away,which meant we had to come up with the money. We were going to go to a bank but, instead I went online because I thought it would be faster. We got a personal loan, in my husbands name only, at 10% interest, which I feel is high. We’ve been paying on it for 1 year. My husband had to get extra work done so we need an additional $2,500. So, I’m wondering if we could go to a bank and take out a loan, in both of our names, to pay off the first loan and an additional $2,500?
Our credit scores are in the 730’s.
I think we could get a lower interest rate.

Terry Says

Well, at least that 10% is a lot lower than a credit card interest rate would be! The answer is you are unlikely to get an unsecured personal loan from a bank, despite your credit score. You could get a home equity loan, but that interest rate could jump higher as rates move up. It’s pretty simple for me to say that the answer is to make some “extra money” to pay down this loan as fast as possible — maybe evening or part-time job on the weekend?? Perhaps you could sell something — your trash might be someone’s treasure — on eBay. Otherwise you’ll just have to pay it off per their schedule.



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