Tell me what you think of this loan.....

iVillage Member
Registered: 08-15-2004
Tell me what you think of this loan.....
1
Wed, 08-25-2004 - 6:07am
http://www.bankofny.com/pages/ilcr_personalloans.htm


I realize you will have to copy and paste, but please give me your thoughts. It is a link to the bank that sent me the offer I spoke of in my first post.

Thanks!

Nancy

iVillage Member
Registered: 04-28-2003
Wed, 08-25-2004 - 8:54am


Depending on credit approval and terms, it looks like it *could* work. However, first, you would have to get approved for the amount that you need to pay off all your debt AND it would have to be at a cheaper rate than what you are paying now. Second, you will have to close or restrict access to every single card that you include in the loan. Best thing would be to close all but the one that you have had the longest probably. Too many times you hear of people taking out consolidation loans, not closing or restricting use on the cards they include in the loan and then doubling their debt because they continued to use the cards. Carefully read ALL the fine print to determine if the certain conditions that apply are reasonable.

My suggestion would be like another poster in your original post - pay only the minimums on each card and track every single penny you spend for 30 days to see where the "leaks" are. Then, cut out as many of the leaks as you can and put those leaks towards your "target" card...whether it be the one with the lowest balance or the one with the highest interest rate is a matter of personal preference. In your case I would probably suggest the one with the lowest balance to get the feeling of having one card paid off. Then, once your first target card is paid off - determine which one will be your second and apply every single extra penny to that one - along with your minimum payment from your first target card. There is a snowflaking website link at the main page that explains this, too.

Many of us have taken drastic measures...cutting back on utilities and groceries are two of the biggest and easiest. Getting a second part-time job and putting all that money towards debt is another. Now is the time to get a retail job if you can work weekends or nights and it's an easy way to make some extra money to help pay down debt or build an emergency fund.

Some books you may want to check out: How to Get Out of Debt, Stay out of Debt and Live Prosperously by Jerrod Mundis, anything by Dave Ramsey or Mary Hunt and if you really want a lot of tips about living frugally - The Tightwad Gazette series by Amy Dzacan (not sure if I spelled her last name right). All of these should be available at your library or through interlibrary loan.

Like others have said though, if you decide to take the loan out - make sure you restrict or close access to any cards you include in the loan.

Good luck and keep us posted as to what you decide!

med12