PostHeaderIcon I want to consolidate my credit cards?

I have about $12,000 in unsecured debt from credit cards. I plan to pay two off soon, but that still leaves about $10,000. I am paying the minimums and have a good credit score (730), but my interest is so high I’ll never pay it off.

My first thought was to go to consumer credit counseling services but since I am not delinquent I don’t want to negatively affect my credit at this point. So, I thought I would go to my bank and get a loan to consolidate. Should I go for a personal loan or a consolidation loan (my bank is Chase)?

Also, two of the credit cards I carry are Chase credit cards, will this hurt my chances of getting a loan? Any help will be appreciated!! I am willing to cut corners, make some extra money etc. to pay off as much as I can. I have cut up my credit cards and not used any for over a year but I am still overwhelmed. Help please!
I am currently paying about $400 a month just minimums, interests rates all around 20%. If I can pay any less than this a month at lower interest it will help no?

13 Responses to “I want to consolidate my credit cards?”

  • Elyseholly says:

    I’m in a similar situation. Starring this question

  • Shira I'nusyl says:

    Why are you only paying the minimum on your credit cards? If you have enough money to get a loan, why don’t you instead make an effort to pay off one of those cards as quickly as possible? One of my roommates cleared out nearly $2,000 in credit cards by just paying them off one by one, using as much money as he had to spare out of every paycheck. I’d suggest a similar strategy for your debt.

  • richkvegas says:

    By consolidating the loan all you are doing is moving the debt. Unless there is a drastic change in interest rates this will not do much for you. If you go to a Credit Counseling Service that makes payments for you, your credit will be trashed. You need to get a 2nd job and pay this down yourself and never use the cards again, good thing you already cut them up.

  • ram p says:

    my frnd i hope this ill help u………coz i had found for me from this

  • Sunidaze says:

    Question for you – why are you paying the minimums each month??? Big mistake right there! I’m not sure how easy it will be to get a loan for that much without some sort of collateral or co-signer.

    By the way, contrary to the belief of some, using a consolidator will ruin your credit. I’ve been doing the same (I had twice the debt as you) for a few years and with the help of a debt consolidation company, I will have it wrapped up by the end of this year. My credit has greatly improved in the process.

  • Need Answers says:

    Don’t move the debt around which will only allow you to create more debt. Pay them off, then never use credit again. If you can’t afford what you want, get a second job and save, then pay cash. The perfect credit score is ZERO, because you owe no one anything and have no need to borrow to obtain what you want. Do it right, don’t consolidate!

  • cardinalboy97 says:

    Why would you go through credit counseling if your credit score is good?

    Get a consolidation loan. Pay off your credit cards. Keep some, but don’t use them. Submerge them in water, then put them in your freezer until they’re suspended in a big block of ice to help you from using them (yes, a friend of mine actually does this).

    You never know when you’ll need one in the event of an emergency. Prada shoes are not an emergency, though.

  • chrylmichell says:

    I would go to a consumer counseling credit agency and let them negotiate a good card and rate or loan for you to consolidate. They will also offer you suggestions on how to keep this from happening again. They are wonderful agencies with many resources to help in all situations. Good Luck!!

  • Precious Gem says:

    Consolidating(sp?) your debt onto one card would help a little. Choose the card with the lowest
    interest. Then make HUGE payments and get it paid off fast. Look over your statements each month
    and make sure the company is adding interest to your current balance. Some companies will fix the interest to the last highest balance and keep it
    there regardless of the actual balance.

  • Jeremy P says:

    You might consider transferring your balances to a 0% APR credit card. Although this won’t solve your problem completely, it will reduce your monthly minimums and help you avoid paying interest for up to 12 months. Over that period, you could knock down your balances significantly– then maybe even switch to another 0% APR credit card before the first intro period is over (until your debt is paid off completely). You can find a complete list of offers here:

    Although switching credit cards on a regular basis might have a slightly negative impact on your credit score– it’s only short-term. Eventually, after you pay down your debt and return to your normal spending habits– your credit score will return back to it’s original state. BIG DIFFERENCE: you won’t be in debt anymore!

    Some people don’t advise using this method because it might be hard to resist spending more with your new credit cards. But if you’re disciplined– you could reduce your debts quicker and save a lot of money.

    Hope this helps. GOOD LUCK!

  • Amanda H says:

    What totally sucked was the fact that after college I had so much credit card debt that piled up and it was really affecting my credit score. I searched around and tried a few of those debt consolidation sites but found that nothing that I tried really worked. I found this kick ass site that helped me alleviate these problems and I want to share it with you.I helped me out so much and I hope it helps you as well.

  • felix hallam says:

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  • See Saw says:

    Credit card debt consolidation adds up all your unpaid balances and converts them into a single payment. This payment is far lesser than each of the individual payments.

    When you finalize a plan with a debt consolidation company, the company repays your dues to your creditors. Then you make a single payment to the consolidation company every month. Your average new interest rate is much below the old interest rate.

    All credit card debt consolidation loans include some type of credit card and debt counseling. You have to trim your lifestyle to eliminate unnecessary expenses. This will allow you to set your house in order. But this necessary, as the ultimate goal of debt consolidation is to help you out of debt, while keeping your home.

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