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I am debating about a consolidation loan to pay off my credit cards. Is that a good choice?

I owe about $10,000 and all are high interest rates. I looked at one loan that says I could have it all payed off in about 3 years. I know I would need to close all the accounts.

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  Answers  |  3

February 19, 2015

Paying off high interest credit cards with a mortgage is a good idea if you can commit to the new budget and avoid charging up the cards again. Do your best to limit your loan costs. Often times a lender can pay your closing costs so that you do not add to your balance with loan costs. In addition, your interest paid is tax deductible in most cases lowering your loan costs even more. Be sure to discuss your entire economic situation with a licensed mortgage professional; Every mortgage plan should be customized to your specific needs.
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Melissa | 02.19.15 @ 14:58

I was looking at a debt consolidation loan to pay off these credit cards, not adding it to my mortgage. And I plan to close these credit card accounts so that I don't charge them up again. So is a debt consolidation loan a good idea?

$commenter.renderDisplayableName() | 01.20.17 @ 08:10

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February 19, 2015

You can read our guide to Debt Consolidation to learn more about whether it is a good idea in your particular circumstance.

Debt Consolidation 101

$commenter.renderDisplayableName() | 01.20.17 @ 08:10

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June 02, 2016

Credit card debt is something you can stop paying on in an emergency and all they can do us cry and scream. If you move that debt to your house and something happens you lose your house. If you can pay extra on a mortgage just pay it towards your credit cards.

$commenter.renderDisplayableName() | 01.20.17 @ 08:10

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