Reply to "Eliminating Credit Card Debit - Take out personal loan with low interest rate"

I second dipper Dave, however, I would not cancel the cards. There are other ways to go about not getting further into debt by using them without having to compromise your credit score. You could put them in a safe for instance or wrap them up like a present. This way, you would have to unwrap it to use it. The best course of action, in my opinion, is to ensure you don’t have them on you. This way, it’s less tempting to pull it out. Locking it up I find is easier too. Once you have made up your mind not to use it unless it’s an emergency, you will find that emergencies are far and in between. I did the whole prosper thing to consolidate mine and it worked great for me. As long as you can get the lower interest rate, that’s the way to go. I’m glad to hear you also put a little extra. Very good. hope this helps! Also, to tie up the first part, don’t close the accounts, just don’t use them. If you feel you’re better off closing them, then sure, but try first to put them in another location out of immediate reach. Better to take the hit then get further in debt, but best would be to put them away and forget about it so you’re not taking the hit on your score. Also, they’ll eventually send you a letter saying they’ll close the account if you don’t use it. Let them close it or buy a tank of gas (and that’s it) to keep it going but then put it back in a safe place for a couple years until you get another letter. Your choice.

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