WWYD?

iVillage Member
Registered: 05-23-2005
WWYD?
6
Tue, 08-26-2008 - 10:51pm

We currently have about 8K in credit card debt and another 5K on a personal loan. The credit card debt is spread over about 7 cards. I got an offer from Discover today for a debt elimination loan at 7.99% fixed. I'm seriously considering consolidating the cards and the personal loan over to this offer and just have one payment each month. All of the rates on the cards are higher than 7.99. I didn't see any fees associated with this in the fine print, it was basically pick your loan amt, pick your length of payments (3-7) years and they send you a check or direct deposit it into your bank account. Has anyone done this? If so, what was your experience, did it work?

I'm fairly certain that we wouldn't run the cards up again, and being completely debt free in a few years is something I've only dreamt of. I have never in my adult life been credit card debt free ever.

iVillage Member
Registered: 08-22-2008
In reply to: bsktbllmom05
Tue, 08-26-2008 - 11:08pm

Sounds okay so long as they don't jack up the rate on you.

iVillage Member
Registered: 11-17-2007
In reply to: bsktbllmom05
Tue, 08-26-2008 - 11:29pm

I transfer money around all the time I worked about 10 cards down to 4 but if you really look around I think you can get something cheaper the 7.9 Of course my rate is very low highest I am paying is 3.9 but I get 4.9 and 5.9 all day in the mail


First National of Omaha will give you a 2.9 or 3.9 on the

iVillage Member
Registered: 05-23-2005
In reply to: bsktbllmom05
Wed, 08-27-2008 - 12:01am
Thanks for the info, I think I may look into that 2.9 rate transfer. I read all of the fine print in the discover offer and it never mentioned a balance transfer fee. This isn't a Discover credit card balance transfer, this is a loan offered by Discover, so their might not be any fees associated with it. I have balance transfer offers on my current cards now, and I could play the shuffle game and get my rates lowered using the existing accounts I have, but I'm really more interested in getting my number of accounts down to one. Then I can set up an automatic payment and never have to worry about it again, and just let it pay off. Hopefully, they will have an online pay option, that I can use to snowflake payments too in addition to the regular payment. Just want to say how in awe I am of you and how you are getting the best rates out there. I am definately not that disciplined to keep everything straight myself, *lol*
iVillage Member
Registered: 08-26-2008
In reply to: bsktbllmom05
Wed, 08-27-2008 - 9:59am

You really have to be careful about those offers because sometimes you have to charge on the accounts ever so often and carry a bal which is usually higher thane the offer.If that's the case , you are charged the higher int rate until that bal is paid off then you can take advantage of the 7.99. I'm sorry I am a credit counselor and had heard this many times before. First find out if that 's the case . In the meantime if you tell me the name of the creditors , bal

iVillage Member
Registered: 11-17-2007
In reply to: bsktbllmom05
Wed, 08-27-2008 - 11:05am

Thank you so much for the kind words


Well I never got a straight loan from Discover If it is a good payment on it and it will help you find. Go for it


I personally like credit cards for money because the payments go down.


mine will be 393 next month from 403 not much but sometimes every dollar helps


Mary Ann

iVillage Member
Registered: 05-23-2005
In reply to: bsktbllmom05
Wed, 08-27-2008 - 5:03pm
Thanks for replying. This offer is actually a loan, not a credit card of line of credit. I have read and reread all of the fine print and it's really tempting me, because its so not like other offers I've received before. In fact, no where does it say that they can adjust the rate at anytime. The only mention is if you default, they have the option to raise you to a default rate. It doesn't say that their are any fees for using this, in fact you either select a check or a direct deposit to receive the funds, so there's no balance transfer in effect. All of the disclosures read like this is a "fixed rate" loan, you just pick your amount and term. I'm still debating though. I keep telling myself if I had done this 3 years ago, I'd be debt free today. There is just something with me and credit cards, I can never seem to get them paid off completely because I use them occasionally and keep adding to the balance.