Jump to content

Refi CC debt

ztejas

By ztejas
in Can You Help Me With This?

 Share

Recommended Posts

ztejas

ztejas 43744

Posted
Posted

I have about $6.5k on a cc balance with WF that I am trying to pay off. Wondering if it would be worth it to try and refi outside of whatever ridiculous interest rate I am battling against them - but I've never done this before.

Probably paying off $500/mo right now - credit score around 650. 

Advice appreciated.

Link to comment
Share on other sites
Cheeseweasel

Cheeseweasel 26438

Posted
Posted
34 minutes ago, ztejas said:

I have about $6.5k on a cc balance with WF that I am trying to pay off. Wondering if it would be worth it to try and refi outside of whatever ridiculous interest rate I am battling against them - but I've never done this before.

Probably paying off $500/mo right now - credit score around 650. 

Advice appreciated.

Do you have a house you can take out a home equity loan on? If so, do it. If not, sell whatever you can to pay this off asap. Credit card debt is a death spiral for money.

  • Hook 'Em 2
Link to comment
Share on other sites
TwiceHorn

TwiceHorn 31684

Posted
Posted (edited)

I don't think there are any/many "refi" options for $6500.  That would imply an unsecured consumer loan at a better rate for that amount, and that would be a unicorn.

Some people do home equity loans for that purpose, but it's secured and you have to have a home and equity in it.

What might work, though, is a balance-transfer offer on some card that will carry it at a more reasonable rate or even 0% for a timeframe in which  you can pay it off at about that amount. https://www.nerdwallet.com/balance-transfer-credit-cards

Edited by TwiceHorn
  • Hook 'Em 2
Link to comment
Share on other sites
ztejas

ztejas 43744

Posted
  • Author
Posted
Just now, TwiceHorn said:

What might work, though, is a balance-transfer offer on some card that will carry it at a more reasonable rate for a timeframe in which  you can pay it off at about that amount.

Thanks. I'll look into that. 

3 minutes ago, Cheeseweasel said:

If not, sell whatever you can to pay this off asap. Credit card debt is a death spiral for money.

Yes. I'm fortunately ahead of the interest rate right now by about 4 factors. Atoning for some past sins at this point in my life. 

Link to comment
Share on other sites
ChickenSandwich

ChickenSandwich 9856

Posted
Posted (edited)

There are tons of cards that offer 12-18 month no interest balance transfers. 

Did this with some home improvement debt I had built up for a few years  just move back and forth between cards each year and average 3-5% interest with Balance tRansfer fee  

Pick one. Nerd Wallet isn’t bad if need suggestions. 

Edited by ChickenSandwich
  • Hook 'Em 1
Link to comment
Share on other sites
ztejas

ztejas 43744

Posted
  • Author
Posted
36 minutes ago, Enchubben said:

Ditto the balance transfer option. 

Tough to be stingy this time of year with holidays coming up, HOA fees etc, but it can be done. Setting realistic expectations for yourself to pay it off would be my advice.

I'm flattered that you think I'm paying HOA fees.

  • Haha 1
Link to comment
Share on other sites
fattyflattie

fattyflattie 4639

Posted
Posted

I’ve had to get a few personal loans in my younger years.  Usually 5-6% for <10k.   I’d do that and pay it down faster if you can.  The balance thing works too but just opens up another opportunity to spend (even if you are not wanting to, emergency etc).  Most of those personal ones will give you a decent rate because they’ll pay the card off direct, and know you aren’t bullshitting about where the $$ goes.  

  • Like 1
Link to comment
Share on other sites
ztejas

ztejas 43744

Posted
  • Author
Posted (edited)
19 minutes ago, fattyflattie said:

I’ve had to get a few personal loans in my younger years.  Usually 5-6% for <10k.   I’d do that and pay it down faster if you can.  The balance thing works too but just opens up another opportunity to spend (even if you are not wanting to, emergency etc).  Most of those personal ones will give you a decent rate because they’ll pay the card off direct, and know you aren’t bullshitting about where the $$ goes.  

Yeah. I applied for one balance transfer card today online but got denied - and I don't know how I feel about continuing to apply for those. 

I'll probably just call WF and start from there regarding personal loans. 

3 hours ago, Nice Guy Eddie said:

What other debt do you have? The problem isn’t your interest rate, the problem is that you have debt.  Do whatever you can to get out of non-mortgage debt in 12-18 months. 

Yes, I'm aware - I am already actively trying to pay it off. The point of the question was if it would be worth it to try and save some money on interest while I work on paying it off. 

I have student loans but those are at very low interest and frozen right now so I'm not concerning myself with that at the moment. 

(Also have a car note. Fuck. But that is what it is 😂)

Edited by ztejas
Link to comment
Share on other sites
fattyflattie

fattyflattie 4639

Posted
Posted
1 minute ago, ztejas said:

The point of the question was if it would be worth it to try and save some money on interest while I work on paying it off. 

Obviously you know this, but even a marginal uptick like $750-1000/month makes such a big difference.   Yes it’s worth it. Fuck credit card debt.  I’ll probably have to work a few extra years due to the money I didn’t have avail in my 20’s because of cc’s.  Terrible things they are. 

Link to comment
Share on other sites
Gatorubet

Gatorubet 30404

Posted
Posted
Yes, I'm aware - I am already actively trying to pay it off. The point of the question was if it would be worth it to try and save some money on interest while I work on paying it off. 
I have student loans but those are at very low interest and frozen right now so I'm not concerning myself with that at the moment. 
(Also have a car note. Fuck. But that is what it is )

Not sure your finances, but you should join/belong to a credit union. Take out a personal loan and pay them off at a reduced rate.

Or, sell your plasma. Or, talk to Army Brat about selling body parts. You don’t need them all, and he likely knows people. He baby sat Keith Richards.
Link to comment
Share on other sites
Jerry Callo

Jerry Callo 8830

Posted
Posted

I wouldn't worry about any creative finance.  Just buckle down and make as much payment per month as possible.  If you have $500 per month, great.  If you can pay $500 + the monthly interest charge, even better (that way you know the debt is dropping by $500 per month and you can put the payoff month on the calendar.

The suggestion about getting into a credit union is a great one, too.   

Link to comment
Share on other sites
Nice Guy Eddie

Nice Guy Eddie 13540

Posted
Posted
2 hours ago, Jerry Callo said:

I wouldn't worry about any creative finance.  Just buckle down and make as much payment per month as possible.  If you have $500 per month, great.  If you can pay $500 + the monthly interest charge, even better (that way you know the debt is dropping by $500 per month and you can put the payoff month on the calendar.

The suggestion about getting into a credit union is a great one, too.   

There's nothing wrong about finding a better interest but the most important aspect is putting energy into paying off the balance ASAP. That is a better return than a lower interest rate. Skip going out to dinner. Immediately go online and apply 50% of that dinner savings to the card.  

Definitely don't use the lower interest as an excuse to pay less on the card.

I don't agree with Dave Ramsey on everything but I've come around to his ideas about paying off non-mortgage debt ASAP, and then doing everything to avoid it in the future. Your savings start to blow up once you hit that goal.

Link to comment
Share on other sites
woohorn

woohorn 1131

Posted
Posted

What are the easy credit unions to join?

I know Navy Federal accepts all former military/dod service of grand parents, parents, kids, step-kids, family members, etc.. That's the only one I'm in.

Any better ones that are broadly available and have good benefits?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing


Football ... Basketball ... Baseball ... Other Sports ... Futbol ... 🤫995🤫 ... Gambling ... Movies & TV ... Music ... Hobbies ... Lulz ... Food & Travel ... Daily Texan ... Business and Markets ... Cloak Room ... Help ... For Sale ... Board Discussion ... Subscribe!... Donate!... Advertise... COOKIE MONSTER!

×
×
  • Create New...