Anyone know about Personal Loans

[dmw16]

Ok, so during college I made the mistake of running a bit of credit card bill. (~$4000)

I have been paying it down now that I'm working but the interest rate is a killer (21.75%).

I acknowledge my mistake now, but I am looking for a way to get out of debt without getting killed by interest.

I was thinking about taking out a personal loan to save on interest or at least break even and spread the payments out (as Im paying off student loans and just moved into a new apartment, etc).

I bank @ wachovia and they have secured personal loans, but I dont like the idea of putting up my 401K and stuff as collateral. Not that I'd miss a payment I just dont like that notion. I'd be willing to pay a little more interest to avoid this. Not like it could possibly be worse than almost 22%.

Thanks for the help.

 

[FoBoT]

many 401(k)'s allow you to borrow against them. mine has a 7% rate and i can get the loan online in about 5 minutes. they automatically deduct the payments on the loan from my paycheck

that might be an option

 

[dmw16]

I've been working for 3 weeks so my 401K isnt worth enough yet.

 

[Rumpltzer]

First off, you should call your credit card company and simply ask them to lower your interest rate. I've heard that this actually works.

Second, you need to find yourself a new credit card company with a 0% introductory rate. My younger sister did this crap for a few years and was able to pay down her wedding debt by switching from one card to another every six months or whatever. I'm sure it didn't help her credit score, but it kept her from paying so much interest.

There are Web sites (and old ATOT threads) that discuss this issue at length. You should look for them to find more ideas.

Good luck!

 

[FelixDeCat]

Originally posted by: dmw16
I've been working for 3 weeks so my 401K isnt worth enough yet.

3 whole weeks huh?


Signature loans (non secured) are only worth it if you know you have enough savings in reserve if you happen to be suddenly unemployed. Use them with caution, even if the rates are enticing.

 

[dmw16]

Thanks for the advice. Yeah, 3 weeks. Just graduated December 22nd.

I will call my credit card company. I didnt really think of that, but I guess that would be a good first try.

Good call on the unsecured loans. The only thing I actually own right now is my car, and I dont want to put that in hock to get this card paid off.

I definatly know now how stupid the whole thing was to begin with and I am a cash only operation now. But I want to get out from under this damn debt so I can move on and start thinking about a house in a few years and all that jazz.

 

[Descartes]

Maybe I'm out of touch, being insensitive, or perhaps something else; however, are you really going to have a problem paying off $4k if you're working, especially if that's your only source of debt?