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Personal Loan suggestions?

by GGpaul
10 replies
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Hey folks,

I'm looking into getting a personal loan that doesn't have too much of a high interest rate. I heard credit unions are the best options for this. I want to consolidate all my bills into ONE. I feel like it would help me out by easing my mind a bit knowing that I only have one payment due every month.

Can you guys provide any suggestions or know of anyone that I can talk to? Or are credit unions only provided if they're local? Not too sure how it works. Would like some guidance...

Thanks.
  • Profile picture of the author Floyd Fisher
    Loan consolidation is the last thing you want to do.

    The only thing loan consolidation does, is zeroes the balance of your lines of credit and credit cards, hence it's now very, very tempting to run them up again, leaving you with double the debt you had before.

    That and if this is going against your house, you are now turning a 7 year problem into a 15-30 year problem...bad, bad, bad idea.

    If you want peace of mind, consider Consumer Credit Counseling Services (or the equivalent in your country), or bankruptcy. That is all I have to say.
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    • Profile picture of the author GGpaul
      Originally Posted by Floyd Fisher View Post

      Loan consolidation is the last thing you want to do.

      The only thing loan consolidation does, is zeroes the balance of your lines of credit and credit cards, hence it's now very, very tempting to run them up again, leaving you with double the debt you had before.

      That and if this is going against your house, you are now turning a 7 year problem into a 15-30 year problem...bad, bad, bad idea.

      If you want peace of mind, consider Consumer Credit Counseling Services (or the equivalent in your country), or bankruptcy. That is all I have to say.
      Nah I wont' do bankruptcy. I'm not struggling. I just want to consolidate it all into one OR I guess I can change the schedule of due date for each bill so they're all in the same date.
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      • Profile picture of the author Kay King
        If you aren't struggling to pay them - either make all due dates the same or simply set them up as autopay from your bank account. Then you don't have to worry about them.
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      • Profile picture of the author dandelioncs
        Originally Posted by GGpaul View Post

        Nah I wont' do bankruptcy. I'm not struggling. I just want to consolidate it all into one OR I guess I can change the schedule of due date for each bill so they're all in the same date.
        Totally know how you feel. Loan consolidation is a great option in my opinion. You have so many due dates and bills and sites, why don't you make as one place and pay on one place on 1 due date.

        Pay attention to all rates of those bills you have, write them down see if debt consolidation won't hurt you. Then do credit union shopping, which one has lower / lowest rates in your area. Sometimes they have special loan so you might want to search which one has the special loan. I'd go with Credit Union. They are my clients, I make marketing ads for them so I know they have special loan sometimes.
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  • Profile picture of the author GGpaul
    Okay, now is there a tactic as far as paying it off? Although $$ is not an issue, I would like to have extra $$ for myself. I don't want to work pay check to pay check just to only spend it on my bills.

    In other words, do u pay the one with the highest interest rate? Or do you pay with the lowest balance ?What's the best strategy etc.
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    • Profile picture of the author dandelioncs
      Originally Posted by GGpaul View Post

      Okay, now is there a tactic as far as paying it off? Although $$ is not an issue, I would like to have extra $$ for myself. I don't want to work pay check to pay check just to only spend it on my bills.

      In other words, do u pay the one with the highest interest rate? Or do you pay with the lowest balance ?What's the best strategy etc.
      I would list any single debts / bills you have, sort it from lowest to highest. A lot of people say, "pay the highest first" but I choose to pay the smallest ones (snowball effect).

      Now I pay the smallest ones first because when you print your debt list, you will see those long lines (if you have lots of accounts ). Once you pay off the smallest ones, cross it off. That way your mind feel lighten, it's about psychology approach. You will feel relieve when you see those accounts crossed off and focus on the next one.

      If you are interested more about this method, look it up: Dave Ramsey - Snowball effect. He pretty much the hero of my financial life
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      • Profile picture of the author GGpaul
        Originally Posted by dandelioncs View Post

        I would list any single debts / bills you have, sort it from lowest to highest. A lot of people say, "pay the highest first" but I choose to pay the smallest ones (snowball effect).

        Now I pay the smallest ones first because when you print your debt list, you will see those long lines (if you have lots of accounts ). Once you pay off the smallest ones, cross it off. That way your mind feel lighten, it's about psychology approach. You will feel relieve when you see those accounts crossed off and focus on the next one.

        If you are interested more about this method, look it up: Dave Ramsey - Snowball effect. He pretty much the hero of my financial life
        Totally what I'm looking for. Thanks a lot! Much appreciated
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      • Profile picture of the author yukon
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        Originally Posted by dandelioncs View Post

        I would list any single debts / bills you have, sort it from lowest to highest. A lot of people say, "pay the highest first" but I choose to pay the smallest ones (snowball effect).

        Now I pay the smallest ones first because when you print your debt list, you will see those long lines (if you have lots of accounts ). Once you pay off the smallest ones, cross it off. That way your mind feel lighten, it's about psychology approach. You will feel relieve when you see those accounts crossed off and focus on the next one.
        That's exactly how I got rid of all my debt a few years ago, I started with the lowest balance & worked my way up to my mortgage. The only bills I've had for the last 5 years is the basics (food, utilities, insurance, etc...).

        Starting with your smallest bills makes it feel like your accomplishing your goal faster (debt free). You have to be serious & devoted to get rid of debt. Believe me, there was plenty of times I wanted to buy things years ago (cars, etc...), instead I payed off bills. After years of debt (car payments, mortgages) it feels great to not be tied down. Man I hate the feeling of having debt, lol.

        I will never have another car payment, that's the biggest money pit besides a credit card. It blows being broke down on the side of the road with a car that still has car payments due. D'oh!



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    • Profile picture of the author Floyd Fisher
      Originally Posted by GGpaul View Post

      Okay, now is there a tactic as far as paying it off? Although $$ is not an issue, I would like to have extra $$ for myself. I don't want to work pay check to pay check just to only spend it on my bills.

      In other words, do u pay the one with the highest interest rate? Or do you pay with the lowest balance ?What's the best strategy etc.
      To be honest, no one strategy is better than the other one.

      Decide how you want to attack it, then stick to it.
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  • Profile picture of the author David Beroff
    Actually, the wisdom is to order debts by the highest interest rate down to the lowest. Consider that debts cost you more when the interest rate is higher, so those are the ones that you want to eliminate first.

    Take whatever you can afford to pay beyond all the minimum amounts due, and focus that all on paying off your debt with the highest interest rate. Once that highest rate (i.e., highest cost to you) account is paid, take that extra amount, plus the minimum amount that you no longer need to pay on that account, and apply both towards the account with the next-highest rate. Obviously, keep going through the rest of your accounts in the same fashion.

    This approach is the fastest way to eliminate your debt.
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