If you pay off credit cards by getting a loan out, aren't you in the same position still?
Maybe a loan won't have interest increase like credit cards, but what is the best way to get out of this situation for good?
that is true, but i mean as long as the loan still paid on time in such it only impacts your credit for the good and yea im sure the rates on a loan will be much more satifying then a credit card....but in my eyes its not something that i would ever do because your creating twice the debt really!!!
Yes and no. Often, people will take out a loan or even refinance their home to include their other debt, such as school loans, as it lowers their monthly payouts or means they will be paying less in interest.
In the end, this debt swap doesn't always work out in the favor of the debtor, but it sometimes gives them a little bit of breathing room to get back on their feet.
Ultimately, even though you still owe basically the same amount of money, if you end up with better terms for your payout, then you aren't in the SAME position, but a slightly better one. Of course, not everyone ends up on top and if you have poor credit, then you might not end up with better terms, but worse.
Before spending the amount. take care of your capacity of repayment..if you are satisfied proceed, else don't use it..
If you can afford the loan repayments, I think it can be quite a sensible thing to do. But only if 1.as soon as you get the loan you clear the credit card. 2.you then cut up the credit card and don't use it again. It won't work if you clear the credit card, and then keep using it- you will then have the loan and the credit card to pay and that is not a good position to be in.
Yes, unless you:
1. Cut up and don't use credit cards again
2. Get a better interest rate on the loan than you have on the cards.
3. Don't stretch the loan out too many years and make the payment the highest you can comfortably afford.
4. Don't take out more credit cards, department store cards, just say NO!
Otherwise you will have more credit card debts plus a loan to pay off and this is hard to do for many people. A lot of people get in trouble by even taking out a home equity loan to consolidate their debts then when they see how they can now easily get by each month they feel they can afford more debt and end up back in the same boat, actually worse off than they were before.
It depends. Of course, best way to pay for credit cards -is to create a budget, save money where you can, pay more than minimum payment, and do not, do not get more debt.
Or get a loan with lower interest, pay off credit cards and then start paying your loan off. That way money that you save with lower interest rate can be used toward paying for your debt.
I hope this helps.
Nobody wants bad credit. Better to owe Sallie Mae, rather than your credit cards.
-pay off your credit card with a loan. If you can, put the card away for a while. Use it for things you know you can pay off.
-Make your payments on the loan.
If you get a loan to pay off your credit card you have set monthly repayments and you cannot redraw on the amount paid off. That is the important point. With a credit card you can redraw and many people do hence never get it paid off. Not only cut up your credit card but close it. From then on use a debit visa card which means you have the facility of a visa card but can only use money that is already in your account.
if the interest rate on the loan is less than the interest rate on the credit card you are in a better situation. Make sure that you don't load up the credit card again until the loan is paid off.
No. There is only one bill and one finance charge. It is easier to keep up with so you're not late with payments.
The interest rate of course is the same and not varied.
Only if the interest rate on the loan is lower than that of the credit card.
Another factor to take into consideration is the term/length of the loan. The longer you take to repay the loan, the more interest you will end up paying in the long run, regardless of whether the interest rate is lower or not.
The best course of action to take is to try to sell off excess items, or try to earn a little extra cash if possible, and channel these amounts towards your card payments, to get them paid down faster. Speaking from experience, it worked for me, along with a heavy dose of self-discipline, and learning to say 'no' to myself when the items in question weren't necessary.
credit cards are a form of unsecured debt and there for non priority. Alot of people try and rob Peter to pay back Paul so to speak and it doesnt work. Getting more credit to pay of existing credit is just trapping you in that vicious circle. If you can pay things then great but borrowing more is inevitably a sign that you are trying to side step the problem / swerve your debt. There are other ways.
Are you need Secured Loans for your business,home or cars?
Visit Gallery Finance in UK.
Apply now for flexible secured loans and homeowner loans at Gallery Finance. They provides loans for debt consolidation, home improvement and much more....
by Clifford Beaver 6 years ago
What is the best way to pay off credit card debt?I don't personally have any major credit card debt, and the debt that I do have is under control. However, I know some people who have let their credit cards get out of hand and I'm sure there are people searching for ways to pay it off. So I ask...
by sandra rinck 9 years ago
Let me start off with roolllff! Everytime I look at a bill I get sick, everytime I need to bust out a credit card just to make it to the next month I wanna puke. Trying to get along in a busting economy is making me sick. I do need advise, good advise in a couple of areas,...
by Davinagirl3 7 years ago
My husband and I are looking to buy a house in the upcoming year. We have run into some trouble looking for a lender because our credit is, for lack of a better term, crap! I am looking for ideas on how to raise our scores. We pay our bills on time, so that isn't the...
by Al Wordlaw 3 years ago
What do you think is better to do if you were $100,000 in debt with credit cards and bills but thenyou either won it or received a $200,000.00 inheritance? Would you pay off the debt and bills or ignore them and enjoy spending the $200,000?
by Gary Anderson 8 years ago
I just wrote a hub on this, but what I want is to have a discussion here. This is the issue: the senate voted on 5/19 to forbid the states from setting caps on interest rates for credit cards. The injustice of this is that the state in which the credit cards are issued, namely South Dakota and...
by blueorpurple 7 years ago
Credit card or cash! what should I use more?
Copyright © 2018 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|