'Refinancing' debt - need advice!
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'Refinancing' debt - need advice!
| 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

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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
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Good Luck & make sure you repay the first part right away to get the lower interest!!!
Becky
CL of 4th, 5th & 6th grade Scoliosis
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