Convince me not to get a personal loan to pay off my credit cards.
March 26, 2013 6:22 AM Subscribe
Should I take out a personal loan to consolidate my credit card debt? Does anyone have any experience with personal loans through Discover?
posted by royalsong to work & money (29 answers total) 7 users marked this as a favorite
A couple of my creditors (and Mint!) are offering me personal loans to consolidate my debt. I don't really know what I'd be committing to and how it's different then credit card debt. Tell me why this is a bad idea, please.
- Total credit card debt is less then $12,000
- I make about $20,000 annually
I am single with no children and do not see this changing for the foreseeable future.
- $700/month of that goes toward (evil!) student loans. Total student loan debt is $42,000. I will be in student loan hell forever, I know. This is a fact I've accepted. Would probably not take out a larger personal loan to pay part of this off unless someone convinced me it's a good idea.
- I currently pay about $250/month toward my credit card debt
- I have very little in savings
- If I consolidated, I would be closing out two of my cards and deep freezing the others. This is mostly because they are too easy to use. (Amazon store card is bad. BAD I tell you)
I would like to get to the point where I can use a credit card to pay for my utilities, and then pay that balance off every month. I want to take charge of this! I made a lot of bad choices for my debt this past holiday season and I need to nip it in the bud.