Consolidating Credit Card Debt

my daughter wants to know if consolidating credit card debt will have a negative impact on her credit rating

if she has been making timely payments and continues to do so, it should not have a negative impact. This site has great info

2006-07-13 14:46:03 by uriahheep73

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I am looking to buy a property in Columbus, Ohio. I have been approved for a $50,000 loan (Not looking for a fancy house, just something small that suffices my needs), but I have slightly over $7,000 worth of credit card debt. Is it possible to buy a home for, let's say $40,000, and then increase my mortgage to $47,000 by adding my credit card debt to the loan?
Is there any possible way to do this?
Thank you in advance!!!!!!!!!!!
Also, I'm a first-time home buyer
--I don't have student loan debt.
I only have Credit Card debt.

No you won't be able to because a mortgage is a secured loan. You won't find a lender that will lend more than 100% of the home value. If you don't have 20% down you'll pay pmi as well. Pay off your credit card debt, save some money up for down payment and get something where the payments are no more than 30% of your take home pay.

2009-01-31 02:24:09 by Bobby

I have a good credit score, last time I checked about 6 months ago it was about 720-730. Recently I have acquired a big credit card debt, about $9,000 on one credit card (with a limit of $10,000) and about $3,000 on another one (with a limit of $5,000) for many different personal reasons. After the whole spending money ordeal was over, I was left with all this debt on my credit cards. Since then, I have cut back on all unnecessary spending, besides the obvious things like food, gas, etc. I have never been late on payments and have never been over the credit limit. I Also try to pay an extra hundred bucks on top of the minimum payment due when I can. Are there any good ideas on how to consolidate these two credit card debts and help me out with all this? Thanks!

First of all, consolidating the debts wont really change anything. In fact may adversely affect your credit score.
You need to do the following:
1. Evaluate you interest rates. If you are paying more than 12%, then think about finding a new credit source to consolidate. With your credit score you are probably getting teaser rate offers in the mail. (Beware of a teaser rate that rests after 6 months, as what you save wont be that much) Look for a credit card that will allow you transfer the balances for a long period at a low rate. Many cards offer rates of 5.99 or less for up to 2 years, but also check if there is a transfer fee. This can be as much as 4%)
2. If you find a good card and rate to transfer, then transfer as much as you can from the higher of the two rates you currently have. If you able to transfer all of 3000 debt, do not cancel that card. (Just make sure you dont use it) Having a zero balance and available credit actually improves your credit score.
3. Make a plan. Figure out how long it will take to pay off each card by taking the minimum payment amount (principal only, not interest) and divide into the amount owed. Lets say on the 10,000 card the principal payment is $277, that means it will take 3 years to pay off that card.
4. If both cards have the same rate of interest, but different pyoff dates, put all your extra monthly payment towards the card with the highest % to the credit line (in this case the 9,000 card as that is at 90% of your limit, vs the 3,000 which is at 60% of your limit). The lower the % owed the better for your credit score.
Finally, do not use the cards. Pay cash for everything. (This is very important if you end up consolidating to a lower interest card. Those cards will apply all of your payments to the low interest balance first, and start accruing a high rate on the new purchases. that will go on until the original amount is paid off).

2007-09-06 11:39:40 by MiM

Getting a personal loan from a bank or going through one of the companies that offer to cut your bills by a percentage and help you pay it off within a couple years. If I go through the bank, I can pay it off at once, right? However, will the interest (which I don't think is part of the alternative) kill me in the long run and put me back at square one?

You might not get a loan depending on your credit. If you can maybe you should but depends on the debt. Sometimes just paying it off in the long run is better. I know it is hard but eventually you will break free from it.

2007-02-06 10:53:46 by cancerking

I am interested in consolidating my credit card debt. Would it be best to use another low/no interest credit card or a personal loan?

Also, would it be best, once these cards are empty, to cut them up and/or cancel them? What would be best for my FICO score?

Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. (10 years for less than $7,500; 12 years for $7,500 to $10,000; 15 years for $10,000 to $20,000; 20 years for $20,000 to $40,000; 25 years for $40,000 to $60,000; and 30 years for $60,000 and above.) The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased.

In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.

The interest rate on consolidation loans is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.

http://loan-house.we.bs/loanconsolidatio n.html
http://loan--house.blogspot.com/2008/03/ loan-consolidation.html

2008-07-21 16:56:57 by Berries