Should I get a personal loan to consolidate debts using car as collateral?
Just paid off car this year. have credit card debt, is loan better than trying to pay off credit cards? Bank said have to have secured loan. No equity in house, good credit score. What would you do?
depends on your credit. I actually would recommend it. you will have a better interest rate and it puts on a monthly payment plan. Once you get this cut your card up don’t close them but cut them up so you do not use them, closing them could hurt you score. This way will help you credit score much, much more. Moving them on to other cards could harm. installment loans are better with credit scores.
Most card companies have programs that can set you up on . they can drop your interest rate so your acount will amortize properly. This change came along with change in bankruptcy laws in nov of 05…another way is to rate shop on a balance transfer, you can transfer balances into promotional rates and save on intrest cards that have a high rate can all be consolidated onto one account…and then you only have one bill one rate it really helps good luck
If you have good credit just search for a new credit card offer with a 0% or low APR and transfer the debt. Never put anything up for collateral if you don’t have to. Good luck.
If you lost your car how would you get to work? Don’t ever put up anything you can’t afford to lose. That is why home equity loans aren’t always a good idea. You could lose your home if you run your debt up again.
Your problem isn’t where the debt is or how many checks you write or who to, its debt.
You need to pay off the debt, not put it in a different pile. Be cheap, work an extra shift and get it paid off.
Remember what it felt like to pay off the car? Wouldn’t it be nice to have the same feeling about the credit cards? Cut them up and pay them off.
Debt Consolidation can help you. anyway car as collateral is not at all a good idea. skip it