Post # 1
Hi Bees, I had a surprise kitchen remodel (thanks dishwasher leak and totally flooded kitchen) about 6 months ago. I decided to do the whole kitchen while I was at replacing the cabinets, because it was a worthwhile upgrade to my home. Insurance covered some, I took out a personal line of credit for the rest, and I put the fixtures and appliances on my credit card. I thought that would be the end of it, and then the new installs damaged a part of my flooring. I replaced that, too. My credit card debt would have been managable with just the initial expenditures, but now I’m feeling swamped after the flooring expenses. I have about $4000.00 on two cards I want to pay down, but it will take a while. That makes me uncomfortable considering my current interest accrual rate.
Has anyone ever gotten a personal loan to pay off their credit cards? I figure the draw to do this is the lower, consistent interest rate and the single monthly payment.
Post # 2
Have you considered opening a new card that offers a balance transfer? Usually the terms are no interest for 12-18 months. If you aggressively pay down the debt, they can be really helpful.
Post # 3
will you qualify for a personal loan if you’ve already tapped out your personal line of credit (I’m assuming anyways, otherwise why use the credit card in the first place?). As PP said I would look into a transfer to a 0% card and pay it down really aggressively before the interest rate goes up.
Post # 4
Do you have equity? Home prices are increasing by 6% a year, so if you take out a home equity loan to pay it off it could basically be wiped away if/when you decide to sell.
I took a loan out on my 401k when I had 6k in credit card debt from dumb dental work. It came out of my paycheck, and I paid myself back the 4% interest instead of a credit card company. The fees were low and it was taken out before taxes.
Last, I originally took out a 0% interest for 18 months credit card with free balance transfer to deal with the debt and they made it so hard to actually transfer the balance that I got so angry I took out the 401k loan instead. So research those cards of you do go that route 🙂 and good luck!