Anonymous asked in Business & FinanceCredit · 10 months ago

Should I get a consolidation loan for my debt?

I lost my job in August and had a period where I depended on my credit cards for basically everything.  I have a job again now, thankfully, but I have $19k in debt spread across 5 cards.  I am having trouble because the majority of my payments on each card is going towards interest rather than paying down the debt.


It was suggested that I consolidate my debt onto a single loan, but a few people have told me that this would only harm my credit in the long run, but I do not understand why it would.

 Thanks for any good advice.

13 Answers

  • 10 months ago

    cut existing obligations,,trade in the vehicle for a cheaper one, sell stuff,do not use any more credit,housing get a roommate,or find cheaper digs while you pay off the debts,, such that you  put away money ,in the bank at every weeks end,,get a PT jib for a few hrs on your day/s off, school loans? adjust your  tastes and expenses each week so you can pay off DOUBLE what you would otherwise pay, if you  are attending a university,,live off campus,,find the smallest rent around

    add  trade knowledge and experience to your folder of  ; qualified for'

    = more money,

    think thrift and resale shops, used everything,

  • Anonymous
    10 months ago


    and pay on the smallest card debt first every spare dime you have 

    while paying the minimum on the others then the smallest next card and so on till they are all paid --- interest rates are less important than progress to end one cards debt completely 

    take a Dave Ramsey class 

    chances are no one will give you a loan but that is not a cure to the debt... just extending it out 

    kill every thing you spend money on until your debt is gone

    no satellite TV or cable no entertainment or fun not a single extra thing and no eating out 

  • 10 months ago

    yes you should gedgsdghsdgsadgsds

  • 10 months ago

    Kid Mohawk has best answer

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  • hamel5
    Lv 7
    10 months ago

    Only if the interest rate is lower than what you have now.

    You could get a 2nd job and pay down what you can. Try to focus on paying the highest rate cards first.  Some like to pay the smallest balance cards first because it gives a psychological boost to get rid of one.

    And, cut up all but one card and use that for emergencies 

  • Anonymous
    10 months ago

    There is not a very good chance you can get a loan of any kind so get another job or two for 6 months or so and every dime goes to the debt. When it gets down to manageable you could quit the job(s).

    THEN take a good look at how you got here because basic expenses for the 3.5 months out of a job should not equal 19K.

  • 10 months ago

    Your credit is already ruined. I suggest this focus on one card and pay off the debt go from largest to smallest.

  • Anonymous
    10 months ago

    You can only consolidate them if you still have good to very good credit. Very few places will lend $19k unsecured.

    And while it might lower the payment, it may not save you much if you don't commit to paying it off soon.

    Applying for a new loan will hurt your credit regardless if you are approved or not.

    But if you are approved and pay off the cards, it should not have much of a negative effect. (Beyond the what the inquiry hurt)

    But there could be a month or two where your report shows you owe the old cards and the new $19k, that would hurt but it would fall off in a month or two and have little to no effect.

    Obviously, you do not need to run up new balances.

    I have an 812-822 credit score. I owe about $225 in between statements. Discover regularly offers me $10k signature loans.

    I suppose I could get them to give me $20k. But if you have multiple cards maxed out, you probably can't.

  • A.J.
    Lv 7
    10 months ago

    You have a few options. There are two kinds of debt consolidation loans. One is where you have assets such as a paid off car or home equity  or 401K and can borrow against it and pay off higher interest loans. The second is finding a non-profit organization, or a bank you have a relationship with willing to take the risk or they have public funding to pay off the cards and ease the monthly.

    They only work if the interest rates are lower because credit cards have very long pay down periods.

    Another option at your level is declaring bankruptcy. One type works out a three year payment plan and at the end clears out the rest of debt. If you have assets they may insist you sell them. There are rules about wiping out debt and don't expect to live on credit for a long time. You change to a cash budget and pay to the plan. You may need help of a lawyer, and there are public service low fee lawyers.

    Another option is contacting each credit card telling them your situation and that if you can't work out a plan, bankruptcy is your next step and they don't get paid. They will sometimes be willing to freeze your use of the cards and lower your interest rate in a plan to pay them back. Again, you learn to live on cash.

    Another option is struggling through and you may need that also. You pay minimum on each card on schedule and all extra money goes to the highest APR card until its paid off and do it card by card.

    Meanwhile, examine every expense and try to keep any non-essential spending down. Most people don't realize how much they spend unnecessarily.

    At this point, with so much debt, your credit rating is the least of your concerns.

    You generally find in debt consolidation that they don't like your risk level, but some will pay off the cards if you tear them up. 

  • 10 months ago

    Absolute get the loan.  Who the heel advised you against that because they're a moron.  Yes, you will get a minor hit to your credit, but that will vanish as you pay down the loan.


    Now let's say you get this loan.  Rather than only paying what was due, continue to pay as much as you can each month and make sure the bank is directing it towards the principle.  You could probably pay it down in 1/3 the time.


    Also, start a goddamn savings account so this doesn't happen again.

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