Hi- what do you think about these options? I am trying to avoid high cc interest on about $5K worth of debt.
Thank you!
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Susan L. Miller posted:
Hi- what do you think about these options? I am trying to avoid high cc interest on about $5K worth of debt.
Thank you!
It’s a tough call honestly. I would lean more towards the personal loan, but that also depends on your credit score. Obviously you want to research and compare to find the lowest interest rates, but there’s also loans available out there with a decent credit score that give you X amount of time to repay the loan with no interest but when you pass the no interest date, the interest is still very low and more easily manageable. Again it all depends on your credit score.
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Several years back we had a loan that was about the same amount as yours, and payments were being made. We heard about a cc that offered 0 % interest for a time period, maybe 1 or 2 years if we did a balance transfer to them. All was ready to go and when it came time to do this we learned there was a fee, it was a percent of what the loan was. It was a good offer in spite of that fee. This transaction eliminated the high interest on the loan and gave us breathing room to pay off the new cc within the 0% interest period.
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I just opened up a credit card with a 0% APR for a year and a $0 balance transfer fee. I’m going to transfer about $2,600 worth of credit card debt to that card and pay it off in a year.
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Hooray!!! Good for you!!!
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I’d avoid pay day loans like the plague! Most are unregulated and interest rates can go to 400%.
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Hi Jobelle- thanks for your response. However, I was thinking of a zero interest balance transfer, or a lower interest business loan, not a payday loan. I have great credit scores and qualify for either.
Happy New Year!
Best wishes, Susan
Lismox- I did that, too! Thank you for commenting.
Best wishes, Susan
Thank you all for your comments!
