How should I pay off my credit card debt? Is it better to get a home equity loan or private loan to do this?
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on Friday, June 19th, 2009 at 5:42 am and is filed under Home Equity Loan.
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5 Responses to “How should I pay off my credit card debt? Is it better to get a home equity loan or private loan to do this?”
Are you going to cut up the cards after you pay them off? IF you take oney out of your home I would. The worst thing that could happen would be to take money out of your house and then charge up your cards again. When you do this you wil have nothing to fall back on. Visit http://www.CreditCardHelpDesk.com they have a lot of good information about getting rid of credit card debt.
The best way is to make monthly payments and try to pay as much as possible over the minimum amount. When ever possible pay as much as you can each month.
In some cases the credit card company will reduce the monthly interest rate if you give them a call and plead your case. Give it a try – it does work for most.
Financial advisers suggest this approach – a home equity loan or a private type loan is not a good financial choice. Do not do that.
Once you get your card paid down, try not to make a purchase on credit unless you can afford to pay the total balance each month. Good luck.
You can consolidate all of these debts into a single loan IF the interest rate would be lower than the credit cards. Otherwise, it makes no sense. Do NOT do a home equity loan for credit card debt – it is very unwise to put your home on the line! If something should happen and you are unable to pay, you could lose your home over the debt. BAD IDEA!!!!!
In any event, you need to cut up your credit cards and not use them anymore! You will never get out of the hole if you continue to use them.
You could ask them to lower the interests on it, most will do.
There are also Consolidation firms who will pay it off for you then you pay them at a lower interest rate, however there are all kinds of sharks out there so you want to be careful who you choose to use.
Below you will find some interesting reading on these matters:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
Hope it helped, cheers.
Are you going to cut up the cards after you pay them off? IF you take oney out of your home I would. The worst thing that could happen would be to take money out of your house and then charge up your cards again. When you do this you wil have nothing to fall back on. Visit http://www.CreditCardHelpDesk.com they have a lot of good information about getting rid of credit card debt.
The best way is to make monthly payments and try to pay as much as possible over the minimum amount. When ever possible pay as much as you can each month.
In some cases the credit card company will reduce the monthly interest rate if you give them a call and plead your case. Give it a try – it does work for most.
Financial advisers suggest this approach – a home equity loan or a private type loan is not a good financial choice. Do not do that.
Once you get your card paid down, try not to make a purchase on credit unless you can afford to pay the total balance each month. Good luck.
You can consolidate all of these debts into a single loan IF the interest rate would be lower than the credit cards. Otherwise, it makes no sense. Do NOT do a home equity loan for credit card debt – it is very unwise to put your home on the line! If something should happen and you are unable to pay, you could lose your home over the debt. BAD IDEA!!!!!
In any event, you need to cut up your credit cards and not use them anymore! You will never get out of the hole if you continue to use them.
Good luck!
Using your home equity is a lot cheaper than a personal loan in terms of interest.