'Refinancing' debt - need advice!

iVillage Member
Registered: 11-21-2003
'Refinancing' debt - need advice!
12
Wed, 09-08-2004 - 11:02am
Hi there,

I think I need your opinion on this one: I have one bank account (my only one) with an allowed credit line of 3.500. I often, oh so often ditch below that. My account has been in the reds for years now.

Now I started thinking: How about refinancing, sort of? I pay an interest of 12,5 % for the allowed credit line, and something like 16 % for anything beyond that. I could get myself a regular credit (or is the word: loan? I plan to borrow money from my bank and pay it back in regular chunks, that's the jist of it...) at 8.9% nominal (that's 10% effective) fixed interest. Is it sound reasoning to go for that, or do I cheat and lie to myself when I see it this way?

Your opinion?

Thanks, Jordis

ivy_jordis

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iVillage Member
Registered: 11-21-2003
Thu, 09-16-2004 - 7:56am
Spamming your e-mail adresses? Sometimes I really don't know what gets into some people's minds... *sigh*

I am glad that this is a board where such behaviour is an exception and strictly dealt with. That's what makes this board a good support community. I wouldn't like to 'come here' if I knew I had to duck well meant 'offers' of that kind here, too!

By the way: I did it, I went to the bank, took that loan, and cancelled my overdraft/credit line (whatever the word is...). Nice guy at the bank, explained everything to me, even told me how to use a little trick to get myself the lower interest rate (take more money and instantly repaying the difference... which I already did!)

I hope this is the beginning of the end to my own personal debt story.

Greetings and thanks (for various things, amongst other being a great supportive community),

Jordis

ivy_jordis

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Thu, 09-16-2004 - 8:06am

Good Luck & make sure you repay the first part right away to get the lower interest!!!


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