I finally decided to go with the debt consolidation loan and boy do I feel free! I received a promotion from Citi Financial one day and decided to call, thinking I wouldn't believe a word they said.
I found out that with my credit rating I could get a loan for $14,000 and my debt was only $5,000. I made an appointment to visit with them the next day and took my 20 year old daughter with me to teach her about money.
I was educated on how this loan would be different than credit card debt because it's like a car loan and the interest doesn't compound daily, just once a month. So if you pay more than the minimum on the loan your interest is seriously cut.
I ended up getting the loan for $3,000 more than I needed to pay off my debts and bought a woodstove and all the fixins. My payments are $224 per month for five years but I plan on spending another $224 bi-monthly to pay it off in 2 years. I figure I will use the money I would have spent on fuel for heat.
The reason I felt I needed to consolidate my loans was because I kept forgetting one or two of my cards and was paying $28 in late fees almost every month. I also got tired of worrying about the credit cards.
I just started paying for the loan Aug. 1st but I will only have to pay the $224 for sure; with a little discipline I can pay the extra $224.
Also, don't cancel your cards. Just cut them up. It hurts your credit score when you cancel any account.
I found out that with my credit rating I could get a loan for $14,000 and my debt was only $5,000. I made an appointment to visit with them the next day and took my 20 year old daughter with me to teach her about money.
I was educated on how this loan would be different than credit card debt because it's like a car loan and the interest doesn't compound daily, just once a month. So if you pay more than the minimum on the loan your interest is seriously cut.
I ended up getting the loan for $3,000 more than I needed to pay off my debts and bought a woodstove and all the fixins. My payments are $224 per month for five years but I plan on spending another $224 bi-monthly to pay it off in 2 years. I figure I will use the money I would have spent on fuel for heat.
The reason I felt I needed to consolidate my loans was because I kept forgetting one or two of my cards and was paying $28 in late fees almost every month. I also got tired of worrying about the credit cards.
I just started paying for the loan Aug. 1st but I will only have to pay the $224 for sure; with a little discipline I can pay the extra $224.
Also, don't cancel your cards. Just cut them up. It hurts your credit score when you cancel any account.
