Should I take out a loan to consolidate $35K in credit card debt?

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pixelwilder06

New Member
I have 35000 in credit card debt. I refuse to file bankruptcy—we got ourselves into this mess and I want to show my kids there are cons equences to spending. The interest is KILLING me. I’m really debating taking out a loan so I just have one monthly payment and not 8 separate bills. Has anyone done this? Is it a HORRIBLE idea? Thanks.
 
The risk is that many people consolidate with this mindset, then rely on their credit cards again. In the end, they face the same debt plus a new loan payment.
 
Go ahead and tackle the debt that's racking up the most interest first just be sure to keep making those minimum payments on the!others. It's a good idea to avoid spending on those cards and to weave debt repayment right into your budget. If you're looking to set a solid example, start by building a steady routine for handling multiple accounts. This really helps you sharpen those money management skills and chip away at balances one by one.

And about consolidating just a gentle heads up that it might tempt you on a tight day to lean back on credit.
 
Filing for Chapter 13 bankruptcy is a potential option. It allows for repayment of debts without the burden of interest, which can otherwise impede financial progress.

Before dismissing the possibility, it would be prudent to investigate it further.
 
Check out GreenPath. My credit union hooked me up with them. They're honestly awesome!! They basically took our 3 credit cards and 1 personal loan and got us a way lower interest rate, so now we just pay them each month. Tbh, they do have a $50/month fee. BUT their app helps with budgeting, has a debt free countdown, and these motivational check ins…imo, they're amazing to work with.

I totally agree you have ot change your habits to really get ahead financially, btw. But I also get it no shame here, ever.
 
I executed a balance transfer of my credit card debt. This process involves moving debt from one card to another that offers a lower interest rate. The procedure was straightforward, and the transferred balance accrued no interest for the initial twelve months.
 
If you can really thrw a chunk of money at this, and chip away at it every month get yourself on a budget plan. But, also remember: you can file for BK Chapter 7 or 13. Get that weight off your shoulders and start fresh. The stress? It will pile up if you don't have a plan. It's tough, I know, with all that interest and I get you want to show your kids the real world consequences. But, if you get that fresh start? You can show them something even better: how to build credit, how to save for emergencies, and how to budget smarter.
 
The problem isn't the interest it's the total amount you owe from spending too much. Fix this by stopping overspending and even spending less. First, take the card with the smallest debt and pay three times the minimum each month. When that card's balance is down to 30%, switch to the card with the next smallest debt. Pay three times the minimum, plus add what you were paying o n the first card. There are many videos about the snowball method on YouTube.
 
I did a balance transfer for 0% interest over 18 to 21 months what worked for me was shredding the cards right after, so I could pay it all off without using them again.
 
I got a loan to pay off my credit cards, and it ended up saving me a ton on interest. I'm actually paying about $1,200 less each month now than I was before!
 
I understand where you're coming from. Filing for bankruptcy and starting over is a big step, but there are resources available to help during these times.
 
just went thru navy fed with my husband to get a loan for my pup's surgery and pay off 3 credit cards it's been a month so far, and we're planning to stick with the payments. honestly, it really helped us out in a pinch
 
This method works well. You must cut up paid off cards or close them. You must change your spending habits. Otherwise, you will run up the cards again. Trust me. I have used this method twice. I found the root cause of my spending. The second time was the last time.
 
It's not a bad idea, as long as you can stop using those cards once they're paid off. We tried this but kept using them, and ended up right back where we started.
 
If you can pay it off in about 18 to 20 months, a balance transfer works well. If it will take longer, consider a loan with lower interest.

It’s also about your habits and lifestyle. Small changes can help you stay on track.
 
I did this and highly recommend it. Close the credit cards unless a specific reason for using them is unlikely to occur again.

My carryover balance was from lawyer fees. Since I resolved that, the balance did not increase again. Many people pay it off, then the balance rises immediately.
 
First up, go after that loan with the highest interest rate and really hammer it with everything you’ve got! Once that’s gone, take what you were paying there and pile it onto the next debt yeah, it’s the classic snowball method in action!
Honestly, you might find way more motivation watching each of those debts disappear one by one, while just thinking about one big loan can feel totally overwhelming
 
We have been working with Family Credit Management for the past year. You are still responsible for paying everything back. BUT they negotiate a very low interest rate and a set payment over five years. (Their fee is $35, I believe.) The caveat? They do require you to close all your credit cards you cannot use them for spending. That was fine by us. THOSE CARDS ARE WHAT GOT US IN TROUBLE to begin with, and I never want to use one again.

We started with close to 50k in credit card debt. Negotiated interest rates down to 1–2%. Now, after a little over a year, we are down to about 35k. It’s a marathon, not a sprint, to get rid of the debt. But i you stick with the plan, it is absolutely manageable to be debt free.
 
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