Consolidating all debt into one loan - worth it>?

Teacher2

If you really feel you can trust yourself not to overspend or take out more credit and you can obtain a 0% credit card then it makes good sense to take one out and consolidate your debts. You can then use the money you are now spending on interest to overpay your capital. Be very careful to spend nothing on the 0% card nor on any other cards. In fact, cut them all up except for one, the one with the lowest interest rate, and then freeze that one in a pint of water for REAL emergencies. (Making yourself feel good in the short term is not an emergency.)

The feel good factor will be in watching the debt diminish steadily.

In addition, if you get any cash bonuses use them to overpay the card debt. When it is your birthday or Christmas, ask for cash and then use it to pay off the debt.

Good luck!

FatherAbraham

airking wrote: »

I think looking into what everyone has said, a 0% card seems best option and closure of the card the balance is coming from

Closing the card account might be an overreaction.

If you want to avoid being able to spend on impulse with that account, then cut the card up, but keep the account. That line of credit has already helped you through one difficult patch, and it sounds like the debt has been well-serviced (no defaults) during the time you've had it. This may be an asset in credit scoring, not a liability.

Warmest regards,
FA

fatbelly

Martin's article on Balance Transfer credit cards is often updated and contains a link to the pre-application eligibility checker

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?_ga=1.205611859.1929694834.1402041528