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  1. #1
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    Default Should I get a personal loan??

    I need some advice please!!

    Ok...current situation is that we have $13,000 of credit card debt and really need to get it paid off! Interest rate on card is 20.49% - and we seem to have around $150-180 per month of interest charges. We are paying more than the minimum repayments each month but are getting nowhere!

    We have talked about getting a personal loan to pay off the card - which I have been approved for at 15.8% over 7 years (we would be aiming to pay over 2-3 years, but as I am about to have a baby this would allow for months where we can't pay as much).

    Now I am confused - should we go ahead with the loan, which would mean having set minimum repayments OR do we stick with a maxed out card and have automatic transfers for a certain amount????

  2. #2
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    I'm not a financial advisor in any means but consolidating or taking out a personal loan would be better then continuing on as the interest rate is 5 % lower and the quicker you can pay out the loan the better

  3. #3
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    Hi there,

    You're doing the right thing to bring down the interest and get on top of your finances, so good for you.

    You should be able to do a bit better than 15.8%. Do you have a mortgage you can tack the $13K onto? If not, shop around for a debt consolidation loan. I've done a quick google search which revealed these possibilities. Seems like there are quite a few cheaper options if you're able to pay it off in 2-3 years.

    http://www.creditcardfinder.com.au/d...-and-repayment

    Whatever you decide, just make sure you read the fine print. Don't get locked into something that will be cheap initially but expensive later. However if the rate goes up after 2-3 years, and you can repay the debt in this time, then go for it!

    You might also want to cut up the card(s).

    Good luck!

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    Izy  (10-10-2012)

  5. #4
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    15.8% is too high. we just got a loan for paying off our credit cards and were given 9.8%.

  6. #5
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    Just make sure that any new loan you get to pay off the credit card allows you to pay out that new loan out early without penalty should you want to do that. I'm just thinking that paying 15% over, say, 7 years might end up more than paying 20% where you could pay it off in, say, 3 years.

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    Izy  (10-10-2012)

  8. #6
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    Have you looked at changing your credit card? We got commonwealth to drop the rate from 20+% to 12ish% by changing from a visa to a MC. Could also look at doing a balance transfer to another bank for the time being, you can generally get rates for only a few % for 6months-1year.

    This way you can pay what you can afford, particularly after you have bubs.

    Might be worth looking into as well as a personal loan

  9. #7
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    I would look at getting another credit card with 0% or a low percentage interest rate on balance transfers. I got rid of all my cc debt this way.

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    Mumma2threecherubs  (10-10-2012),PR2bMum  (09-10-2012)

  11. #8
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    I would get a personal loan. Lower interest rate, set payments & an end date. If you switched to a lower interest rate credit card (the banks might not even allow this option) be careful that you cut up the old card & close the account. Ive seen alot of people get in even more trouble by using both cards.

  12. #9
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    Yep I second PP suggesting getting a balance transfer to a new card, they generally offer 0% (or very low) for 6-12 months, you pay off as much as possible in that time, but CUT THE CARD UP, NEVER use it. You can then look at doing it again if you need to or then go to a personal loan if you have to in order to pay it out that way.

  13. #10
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    I second the balance transfer for 12months and than transfer it again if you need. Work to get that sucker gone!


 

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