Rates) To Pay Off My Credit Card Debt?

Q: Is it a good idea for me to take out a loan (at much lower interest rates) to pay off my credit card debt? Anyone done this before? Is it easy to get approved for this if I have a good credit record and have a good paying job?

A: 1) If you aren't sure of the answer, you should cut up your credit cards immediately (seriously). 2) Whichever method is costing you the least is the best way to pay off a debt. Since your credit card interest rate is going to be much worse than any rate you would get at the bank, then the bank loan would likely be preferable. 3) If possible, set up a line of credit with the bank, and do away with credit cards as a means of borrowing money. A line of credit is probably about 75% lower than the interest rate on a credit card. That may not necessarily be enough to get a loan from the bank. It's going to depend on just how much it is you owe on the credit card (plus any other debts) and other factors the bank will look at. But there's sure no harm in trying.

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