How a personal loan helped in my debt consolidation
After a while, I finally took the time, sat down and really did a thorough examination of my financial status. All in all, it was not really all that appealing. Given how much money I owed on my vehicle, and various credit cards, I began to seriously consider some sort of debt consolidation program.
One of the first things I was told was actually what I had already started to do. And that was have a very clear understanding of exactly what was owed, to whom, at what sort of interest rates, and when I would likely pay off the debt.
Once the data had been collected, it was suggested to me that other than winning the lottery, I might seriously consider some sort of personal loan strategy in order to work my way out from under the mountain of debt.
In a nutshell, the theory behind taking out a personal loan is that if you can get your interest rates lower on the loan that what you are paying for the various credit card, auto, and other loans, you should theoretically be able to become debt free faster and healthier than with out it.
Of course, all of this depends upon not continuing the spending habits of the past. I think, however, that I’ve learned my lesson. I’m ready to move forward: clear and clean of high interest debt.
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4 Responses to “How a personal loan helped in my debt consolidation”
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So can personal loans help with your credit card debt as well? I owe about $23,000 all told on credit cards. I was thinking about going to the bank and asking for help, but is the interest rate any better? Or I might just wait to consolidate it all along with the loans I have for the boys’ college
One payment to one person does sound pretty good, but my real issue is that I simply don’t make enough money. I mean, I don’t live any kind of extravagant life, but I still seem to slip into debt at the rate of about $500 a month. That’s how my credit cards build up.
Is a personal loan better than just getting a home equity line of credit? Seems like I’m slowly eating away all of my equity, so I’d be interested in finding out if it’s better to get a personal loan than just taking it out of your house.
This actually sounds like a better option. If you have any equity at all, best to leave it in the house in this unstable market. But for many people, they actually DON’T have any equity in their home right now. And what if you get a HELOC and then the value goes down a lot?