Debt consolidation loans

[LCguy]

I had a ton of credit card debt but locked in and paid it down in one year. It definitely sucked, but it's definitely doable. You just have to make sacrifices. I stopped eating out for lunch everyday, I stopped eating out for dinner on the weekends, I stopped buying anything outside of my needs. In fact, I stopped doing much except working, going to the gym and going fishing. I went to costco and purchased everything in bulk, and never ate or drank anything outside of my grocery budget. This did two things 1) it allowed me to pay a huge chunk of the debt every month and 2) it also allowed me to start building liquidity even while paying down the debt.

Once I had it all paid off, I stopped using the credit card. I still have it just in case but have been able to build my liquidity to the point where I can cover 95% of emergency expenses.

My advice is, whatever you decide to do, do it quick. It will wear down your relationship fast.

 

[Predator_SD]

Transfer your debt to a 0% card offer of say 12-15 months or whatever. Once that’s done CLOSE YOUR OTHER CREDIT CARD ACCOUNTS.

Next, aggressively start paying down your debt. Not sure what you make but it should be painful, $500-$1000/month.

While you’re doing that BUY NOTHING outside of your NEEDS. Talking food, gas, paying the mortgage, etc.

You’d be surprised how quickly it will get paid off doing it that way man. You’ll be out of debt in 15 months-2 years depending on how much you committ to it.

 

[MountainTracker]

Yep debt sucks and with the rates these days it can and will eat people alive if left unchecked.

I’m not a financial advisor but here is what has worked for me.

Make a budget, write down all your expenses for the month. Get envelopes and put cash in them for those expenses. If you don’t want to do that, figure out a way to separate your expenses from extra cash, that what you don’t accidentally spend it.

Put aside $1-2k for emergency

Next look at the expenses and cancel everything that is not absolutely necessary. Any online tv, subscriptions cancel them now. Stop going out, don’t buy things at the gas station…..

Cut up all credit cards.

Then start snowballing your debt from small to greatest. Once one is paid off move over what you were paying on the old debt to the next debt. If you have any extra cash more than the emergency fund, throw it down on the debt.

I put up a chart so I could see how we were breaking it down.

Here is the kicker, if you really want to get out of debt quickly sell any of your hunting gear you don’t need. Extra guns gone, tents, glass, and so on for anything else you may not need. The reality is we can hunt without having the “latest and greatest”

Yeah this is basically the Dave Ramsey model, but I do think there are better ways to invest vs his models, but that’s not what we are talking about.

None of this will matter if you don’t change your habits that’s why taking another loan to pay off debt may not be the best route bc what’s to keep you from racking up debt again?


Good luck, I did this before having kids, sold motorcycles, and cars to pay cash for a rig that worked, so I could be debt free before the kids arrived. I understand the struggle.


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[Axlrod]

The problem with a debt consolidation loan is, a lot of people without a budget and money management skills, max out their now empty credit cards. So you end up worse than when you started.
If you want to get out of this, your attitude about money needs changing. You may think Ramsey sucks, but all of the suck you are in, is on you. And you are the only one that can fix it. It won't be easy, but it is just discipline and common sense. The hard part is sticking to it, 6-12 months down the road when you still have debt, and have been living on ramen. Good luck!

 

[midwestcowboy]

Might be important to note that actually closing 0 balance credit accounts can negatively impact your credit score. I'm pretty sure if you just don't use the card for 6+ months it'll automatically close and not ding your credit. Something to consider.

 

[KsRancher]

This probably wont be very popular.


But if you can be VERY disciplined. Use credit cards to get out of debt. I have had 1 credit cards for 20yrs. Always getting credit card offers in the mail and juat throw them away. Went self-employed Jan 1st. So I started opening them and seeing what they have to offer. Signed up for one 30days ago. It had a $750 cash back if you spent $6,000 in the first 3 months. I just used it for all my business expenses in Aug. Put $7,200 on and just paid it off. Got $787 off of the total. The way I look at it i made $787 for myself. Another offer in the mail last week. It wasn't quite as good. $500 off if I spend so much money.


Both if them have 0% for 12 months. You could transfer of your other credit card debt for 3% and take 12 months to pay it off. And even use it to pay your everyday bills and capitalize on that cash back to help pay off of your transfer debt. Now, it would take some serious discipline or you could be in a real pinch. All of the everyday bills you will have to make sure you paid them off every month. Plus pay however much more to get the transfer amount paid off on 12 months.

 

[ddd-shooter]

This probably wont be very popular.


But if you can be VERY disciplined. Use credit cards to get out of debt. I have had 1 credit cards for 20yrs. Always getting credit card offers in the mail and juat throw them away. Went self-employed Jan 1st. So I started opening them and seeing what they have to offer. Signed up for one 30days ago. It had a $750 cash back if you spent $6,000 in the first 3 months. I just used it for all my business expenses in Aug. Put $7,200 on and just paid it off. Got $787 off of the total. The way I look at it i made $787 for myself. Another offer in the mail last week. It wasn't quite as good. $500 off if I spend so much money.


Both if them have 0% for 12 months. You could transfer of your other credit card debt for 3% and take 12 months to pay it off. And even use it to pay your everyday bills and capitalize on that cash back to help pay off of your transfer debt. Now, it would take some serious discipline or you could be in a real pinch. All of the everyday bills you will have to make sure you paid them off every month. Plus pay however much more to get the transfer amount paid off on 12 months.

lol
Telling the spending addict to spend his way out IS a bold move.

@TradLife406
Swallow your (broke, in debt) pride and start listening to Dave Ramsey.

Seriously. He’s rich from helping people EXACTLY like you how to not be broke.
Not listening to him because he’s rich is like not listening to Tom Brady because he’s won too many super bowls.

 

[JustABritCrazy]

I got in a bad financial pinch in the mid 90s. Took a promotion, bought a house and then it the fan. Couldn’t sell my first house, had to pay two mortgages and then a vehicle died along with having to sink money into both houses. Ran up a significant amount of credit card debt. Played the card switch game ruthlessly transferring balances to 0% cards every 6 months or so. Made a huge difference in getting my head above water along with getting a long term renter into the first house. Did have the displine to only use my cards for absolutely needed purchases. Debt consolidation into low interest cards worked great for me, but if I hadn’t the discipline to control my spending it would have been a disaster.

 

[dtrkyman]

I use zero percent cards when I have a lump sum for something occasionally, just got one for 18 months and put the 5k I had to spend for tree removal on a rental property on the card.

If it’s offered transfer your debt to one, even for a small fee, it gives you some time to breath while chipping at the debt!


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[Steve300xcw]

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

How many toys have you sold?

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

How much is left on the truck? What is it? Truck payments suck. I'd dump that thing ASAP. Pick up a $10k rig and put the rest towards what you owe.

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.

Pretty easy to blame folk for the situation you're in

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?

There are credit cards and then there are credit cards... Interest is different as well as what and how much they kick back

 

[svivian]

A debt consolidation loan is just a bandaid that will later cause greater issues if you don’t fix your spending habits…

I deal with this all the time in banking. Someone will come in and pay off tens of thousands in credit card debt with a heloc. Instead of paying off the heloc, they just kick the can down the road like all their problems are fixed.

Next thing they know they are back in my office needing to increase their heloc but now they can’t because their DTI is maxed.

Also don’t pay off short term debt (truck loan) with longer term debt(heloc)

If you do do a heloc please do a principle and interest payment repayment and not an interest only.

 

[Steve300xcw]

$15k is a good chunk but isnt a huge amount of money.

I'd be dumping optics, packs, stocks, bullets, brass etc first. Sell a few guns I never use anymore, Marketplace the shit outta junk in the garage. Not asking top dollar, just priced to sell. That on top of getting away from the truck loan and you just paid everything off

 

[KsRancher]

Another thing. Sit down and figure out exactly how much you need to just exist. If you aren't bringing that much home then you have an income issue, not a spending issue. You may have an income and a spending issue. I read that on here on another thread quite a while back. And I realized I wasn't making enough money. But I didn't see it for a lot of years. My employer was always telling me how good I had because how much he paid and all of his benefits. But I then realized that he wouldn't even get out of the house for the wage I was making.


Went out on my own and the only regret is I didn’t do it sooner.

 

[Steve300xcw]

. But I didn't see it for a lot of years. My employer was always telling me how good I had because how much he paid and all of his benefits. But I then realized that he wouldn't even get out of the house for the wage I was making.


Went out on my own and the only regret is I didn’t do it sooner.

X1000000000000000000000


That aint the OP's problem though

 

[elkliver]

Credit card debt is very expensive debt, so in that scenario, it may make sense. The problem is that most folks in that situation quickly run up the credit cards again. And it is not usually a good plan to continue tp max your equity on the house. As of others have said, change the habit. Immediately. take extreme budget measures ASAP. sell some toys and quit using the cards. How big of a dent could you make in the credit card debt in the next 4 months