[USER]

Seeking advice, we have about $13,000 in credit card debt over about four cards. All with 29% APRs or higher.

I’ve been getting offers from credit karma for card consolidation loans with a 14% APR, with a total ranging anywhere from 10-16k.

Fixed loan with varing months (36-60) Even the 16k payment’s would be cheaper than what I’m paying monthly right now.

Has anyone ever tried doing this? Any advice or companies I should stay away from?

I’ve never done one but this seems like a good option to be able to pay things down faster.

[Jennifer]

I took advantage of 0% transfer offers for about 3 years, rolled over to 3-4 different cards, and didn’t close any of them.

I paid 2-3% in transfer fees and my credit rating sky rocketed.

I keep a points card in use for my daily stuff, and pay the balance due every month to earn money and keep my credit rating over 825

[Carol]

The only way a card consolidation loan works is to cut the cards and never use them again. You might want to keep one bank card for emergencies I took out such a loan for like $50,000 and paid it off in four years.

It would’ve taken God only knows how long to pay that kind of money off.

So sometimes it does make sense but only if you have strong will.

[Krista]

It’s a personal loan. A good option only if you also do not run the cards right back up. Cut them up. Lock them up.

Out of sight and forget them. Don’t close the account tho.

Closing the accounts will crash your credit score

[Rachel]

If you do not touch the cards after the transfer, the fees+ interest are lower than your current cards, and you are realistically able to pay them off more quickly by continuing to pay at least as much as you arw now – even if your payment minimums drop, then a loan seems like a good choice.

[Antonia]

I have a personal loan with Upstart. But I don’t recommend personal loans unless you get rid of the debt permanently (ie you use it and close the cards or you’re getting rid of non-revolving debt like a medical bill).

Also, the payment for the loan should be less than the minimum payments on the items you’re paying off.

For example, I paid off a prior personal loan and two closed credit cards. Instead of paying about $250/month I pay $156.

And the interest rate is lower than the first personal loan.

[Sally]

Credit Karma offers are incredibly high interest. Try your local bank or Credit Union

[Naomi]

Go through a credit union and ask about programs like greenpath or something similar!

Good luck and remember you can do this!

[Dye]

We just got a consolidation loan with our bank. The highest Apr was 18%. It broke our payment down and lowered our interest rate down significantly.

Now we can pay what we were paying before on the cards which is pretty much a double payment so we are saving so much on interest.

I wouldn’t do it through a company but through your bank.

[Perla]

I got a card through credit karma where transfers had 0% interest for 12 months (Discover). I used it to pay off my card and save on interest.

However, you have to be very disciplined and stick to your goal to pay it off before the 12 months

[Author]

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