I have $10,000 in credit card debt I need to settle (Discover Card). I've been paying but don't seem to get anywhere so I'd like some advice/suggestions. Can I get a personal, unsecured loan for that amount to pay it off? I figure if my interest rate is lower and I'm not subject to all the ridiculous fees I'd be able to pay if off in 3 years with my current payment. What are the sources for these? Would I be better off going with a debt settlement company? Other ideas? I have a job and a mortgage and am married but I'd prefer for personal reasons to take care of this myself.
Realistically the only way you can do it is to 'rob from Peter to pay Paul' - eg. get another loan at a more favourable rate of interest. There's a couple of ways I can think of - either take a bank loan (might be a better rate) or transfer your balance to a new credit card. That second suggestion might sound crazy but a lot of credit cards have an introductory interest free period, usually of 3-6 months - if you keep transferring the balance between card providers with this interest free offer you can dodge the interest payments for quite a long time!
Wait until you get one of those transfer offers in the mail, move it and reduce the interest. Do read the fine print before doing this. Pay something extra every month. Those amounts all go towards the principal reduction. Whatever you do DO NOT let some loan officer talk you into a "home equity" loan. Never transefer unsecured debt to secured debt. Worst case with unsecured is you lose your credit rating if you can't pay. BTW, cut the card in 12 pieces right now if you haven't already done so. I still have matted and framed cut up cards from 1978 when I got tired of the routine. I matted them later. Even had to use used frame at the time.
Thank you thank you thank you you are the man to help you love you love you love you love world and i ll love you kill debt kill debt kill debt debt will kill all bad debt oooooo sorry I was trying to write a poem
People don't declare bankruptcy over a matter of $10k, although I know it's the trendy thing to do nowadays in some countries (like here in the UK). Declaring yourself bankrupt when you still have secured loans like a mortgage is sheer craziness!
Thanks. I have cut up the card and closed the account but just can't seem to get get the balance down. That's why I'm really thinking about an unsecured loan. I think I can get one with a lower interest rate than I'm paying credit card company so that would help pay it down too if I keep paying the same amount.
This is the best answer. Wait for another low or zero percent offer from a different credit card company, transfer the amount outstanding on your Discover card and then add some more to pay down the new amount. Keep repeating until it's gone and then celebrate.