Debt consolidation loans

[TradLife406]

I can't be the only one in here who's not the best with money especially with how much I like hunting/shooting.

Usually I'd be good with buying probably too many toys. But with how the economy is right now things are tight.

Thinking about taking out a consolidation or home equity loan to pay off some credit card debt and maybe what I've got left on the truck. Probably have about 15000 with And them interest rates

Then also some self improving on my management skills. Apparently investing in lead and copper isn't the precious metal investing they talk about Dave Ramsey sucks. The wife is like we should be rich by now Well Dave Ramsey said... It's a lot easier being rich and telling poors what to do.

Try and avoid credit cards but stuff happened and paying them off each month doesn't happen 100%.

Any advice on their before I start talking credit unions?

 

[PNWGATOR]

Enroll in Dave Ramsay’s Financial Peace University and dive in head first with your wife and complete and apply the program. If you can find an in person class locally I’d recommend it over the online class. It’ll change your life!

 

[doc holiday13]

401K loan.
But it won't do you any good without changing your spending habits

 

[Stache Attack]

I’m not extremely versed on these two loans, but for that low of an amount I don’t know if I’d do it. Maybe if the interest is dirt cheap then maybe. New debt to pay off old spooks me.

 

[Lawnboi]

Credit card debt like that will eat you alive. You could probably fund your shooting habit just by getting rid of that interest burden.

 

[go_deep]

Don't borrow money to pay off borrowed money, from anywhere, ever.
This is a you problem, not a math problem.

 

[Johnny Tyndall]

I'm going to disagree, sort of, with the people who say that refinancing debt doesn't work. It is true that without behavior changes you are going to keep having the same problem. But 25%-30% interest will eat you alive. I don't know what your truck note is at, but anything over maybe 10% interest I'd work real hard to refinance. The best option is 0% balance transfer credit card, if your credit score allows it. After that, probably a debt consolidation loan from a reputable lender (local credit union or the like).

I wouldn't mess with 401k or home equity loans. Your home and your retirement account are good financial backstops for other dumb decisions, don't jeopardize those. Plus if you're savvy enough to successfully execute some plan involving them you're savvy enough to have other options.

 

[ProStaffSteve]

Dave Ramsey does not suck in this case. His flaws include telling people there are ways to make money that don’t really exist, and that money market funds yield 7% returns, which wildly skews predictive math on becoming a millionaire.

Unfortunately for you that math is not your current worry. “Saying you’re bad with money” is a problem in itself. Being bad with money isn’t a thing, it’s systemic. Buying **** you can’t afford like trucks, guns, fishing boats, hunting trips.

Do not take out a home equity loan on fifteen thousand in cc debt. You need to change your spending habits. Your hobby should not be shooting when you have debt, your hobby should be more work. You have built yourself a mountain of liability, thank goodness it isn’t worse, but the new game is, getting out of that. You should feel a fire under your ass. The next 6 months could make it or break it if you ignore the issue.

 

[TradLife406]

I'm going to disagree, sort of, with the people who say that refinancing debt doesn't work. It is true that without behavior changes you are going to keep having the same problem. But 25%-30% interest will eat you alive. I don't know what your truck note is at, but anything over maybe 10% interest I'd work real hard to refinance. The best option is 0% balance transfer credit card, if your credit score allows it. After that, probably a debt consolidation loan from a reputable lender (local credit union or the like).

I wouldn't mess with 401k or home equity loans. Your home and your retirement account are good financial backstops for other dumb decisions, don't jeopardize those. Plus if you're savvy enough to successfully execute some plan in involving them you're savvy enough to have other options.

Thanks!

Yeah I'll touch the 401k for small amounts vs a credit card. I can borrow against money I already have vs debt to a bank.

Oh yeah no doubt I need to unfk myself. Just trying to work around how to get my head above water in the process.

 

[Matt5266]

I'm not sure about the loans but joining Rokslide has been the worst financial decision I've ever made.

 

[TradLife406]

I'm not sure about the loans but joining Rokslide has been the worst financial decision I've ever made.

Hahaha so true!!!!

Usually am able to just trade off old gear for new stuff. But it doesn't always work out that way.

 

[TaperPin]

“It’s not an addiction unless it negatively impacts your life.”

That was my buddy justifying his gambling, while blowing through some inherited money that was going to buy new trucks for him and his son. The son got an old crappy truck instead and my buddy still has his old truck. lol

You gotta have a hunting/shooting budget and if you have hunting/shooting debt paying for it also has to come out of your budget.

Plenty of spouses both old and young have voted with their feet when their partner blows all their money on hunting.

 

[180ls1]

At least start the snowball and a hard budget first before you borrow from your retirement or shift debt around.

Research: The Best Strategy for Paying Off Credit Card Debt

Pay off the smallest debt first.

hbr.org

 

[Chris in TN]

The problem with trying to get one lower-interest loan to pay off several higher-interest loans is that it opens the door where it's now possible for you to use it to buy more stuff you can't afford and you can't trust yourself not to walk through that door.

 

[Ucsdryder]

Good luck. I stress about money. If I was in your shoes I’d go cash only. There’s something about handing someone cash vs swiping. It becomes a whole lot more real.

Also, this is just based off your OP but it sounds like you’re putting your family and relationship in a tough spot, joking about how much your hobbies are putting you and your wife into debt. Last thing you want is to be in debt and alone. Again, if I’m off base here I apologize up front.

 

[180ls1]

Good luck. I stress about money. If I was in your shoes I’d go cash only. There’s something about handing someone cash vs swiping. It becomes a whole lot more real.

Also, this is just based off your OP but it sounds like you’re putting your family and relationship in a tough spot, joking about how much your hobbies are putting you and your wife into debt. Last thing you want is to be in debt and alone. Again, if I’m off base here I apologize up front.

Great point. Speaking of points, many think they are getting a good deal because of CC points but when you actually look at the data cash only spenders save WELL IN EXCESS of any points earned.

 

[The_Jim]

I’ve always stressed about money and been frugal so it’s hard to relate BUT when I got married my wife’s student loans and car loan became our loans. The debt snowball is amazing. It was 17 years ago so my numbers are fuzzy - but we knocked out around 20k in 6 months.

 

[Ajsomp]

You can’t out invest high interest debt. Depending on the truck payment/interest I would focus on the CC first. Treat it as a financial emergency. As if literally you’re on fire and need to put it out as fast as possible.

Figure out how you got there. Start changing those habits. Take some courses, listen to podcasts/audiobooks - your money or your life is a good one. Any FIRE related podcasts will also help.

Debt consolidation CCs and transfers can help - if you actually pay them down and aren’t just using them to enable your continued excessive spending.

Good luck- financial readiness is a great thing to focus on.

 

[IDVortex]

If you do a debt consolidation loan, get some counseling with money.

I was not raised money rise. Ive had to learn the hard way about money. And had to do counseling for it.

Like others have said, if you do a debt consolidation loan, youre not fixing the debt, youre moving it, and opening yourself up to more debt. Be wise. Debt consolidation loans aren't a bad thing, if done wisely.

 

[bhovda]

Just depends on what your priorities truly are. Can always sell stuff to pay off the debt. Needs vs wants