anybody ever consolidate their debt?

[beanz]

is this a good move? yes? no? depends?

i would appreciate some advice on it if anybody has ever done it. ill give some more details of my situation if asked but basically we are making a high amount of monthly payments for credit cards, student loans, and things like dell and raymour n flanigan.

somebody suggested i look into a personal loan to pay off all that stuff and then just have to worry about paying the bank since we could get a low interest rate because of my wife's high credit score.

im not well versed on these matters and im kind of confused with the shyt im reading on google.

so a layman's version would be cool. is this a smart or dumb move?

 

[Domingo Halliburton]

basically you're paying off old loans with a one new one with a lower interest rate. instead of multiple loans you have a single payment now and often times can save on better rates.

personal loans can depend on what type of relationship you have with the bank because they're unsecured (i.e. you're not providing collateral). Sometimes they'll ask for a second mortgage or a HELOC to back it.

 

[beanz]

basically you're paying off old loans with a one new one with a lower interest rate. instead of multiple loans you have a single payment now and often times can save on better rates.

personal loans can depend on what type of relationship you have with the bank because they're unsecured (i.e. you're not providing collateral). Sometimes they'll ask for a second mortgage or a HELOC to back it.

yea i think the mortgage thing is what confused me. we rent, so would that mean we wouldnt qualify? whats HELOC?

sorry if im being an annoying noob but i spend so much time on thecoli i figured i would ask u guys for help. i did a credit thread before and i got some gold advice and bumped my credit up 40 points this past year.

 

[hashmander]

home equity line of credit. it's a line of credit that's available based on the equity you have in the home and you only pay interest when you draw from it. if you had a home and had equity in it this wouldn't be the right option for your particular issue anyway. a regular equity loan because that's good for a one time event and the interest rate is fixed so you know what you have to pay back. this one time event would be debt consolidation in your case. home owners with a lot of equity can also do a cash out refinance.

 

[Domingo Halliburton]

yea i think the mortgage thing is what confused me. we rent, so would that mean we wouldnt qualify? whats HELOC?

sorry if im being an annoying noob but i spend so much time on thecoli i figured i would ask u guys for help. i did a credit thread before and i got some gold advice and bumped my credit up 40 points this past year.

in that case you'd have to go for a personal loan. Unless you are looking at some application process on the banks website you can just walk into your bank branch and ask for the branch manager (they're there for the public) and let him know what you're trying to do and ask what the next steps are.