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I am thinking of taking a secured loan to clear credit card debt , any advice?
Question : I am thinking of taking a secured loan to clear credit card debt , any advice?
credit card debt advice
Best answer:
Answer by siu
Good Idea. If you own your own home, and you have enough asset, you may get a second mortgage, use the money to pay off your credit card, and you also can deduct the loan interest on your taxes. Usually credit card interest are much higher than bank loan. But, lots of people do the same what you want to do, after they get a secure loan to pay off the credit card, and they charge it up again !!!! sad !! Good luck.
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#2 written by Laurence S 1 year ago
But if can get a unsecured loan why you want to take a secured loan. You can get a unsecured debt consolidation loan at low rate and so you would not have risk of your collaterals.
Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference which offers debt consolidation loan
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#3 written by Ms M 1 year ago
It is typically a bad idea unless your credit is still good, despite your debts, because you don’t want to take out a loan with a higher interest rate than the original interest rates of your debts or you’re just digging a deeper hole. If you’re looking at getting a debt consolidation loan, your credit is likely suffering, and you’re not going to get a better interest rate on a loan now than you did then.
The best option for debt trouble is negotiating your debts with your credit companies to keep the payments from swallowing all of your income. Typically, you have to get a counseling agency to call on your behalf. If you try to work with them yourself, many of them will not cooperate with you because you are not enrolled in credit counseling. Try http://www.womenindebt.info. Good luck!
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#4 written by bdancer222 1 year ago
What are you using as collateral for this loan? If it’s the equity in your house, its a very bad idea. The interest rate may be less but all too often people who shift credit card debt to another loan, end up running the cards back up. Then you still have all the credit cards to pay and that big loan.
If you shift the debt to your house and can’t keep up with the payments, you lose your home. Also, the rates may be lower but when you extend the term to 10 or 15 years, you end up paying a lot more in interest.
Unless you are disciplined enough to not run up the credit cards and work at paying off the new loan as quickly as possible, don’t do it. Work on paying the cards off.
Take every penny you can squeeze out of your budget and put it on the highest interest rate card, while making minimum on the rest. When the highest rate card is paid off, move to the next till you have them all paid in full.
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Hi,
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