CC vs LOC

iVillage Member
Registered: 08-02-1998
CC vs LOC
7
Sat, 01-17-2009 - 5:25pm
Going through my bills and figuring out which to pay and how much etc, I was thinking that maybe I should pay off my CC's with my LOC, my credit cards are at 11.9 and 19.5 but my one LOC is only at 3.75


The only thing I am afraid of is if I do this, is that it may be tempting to use the CC's. I see it as a sort of Consolidation loan but using my own accounts to do it instead of going to the bank. The LOC is an unsecured LOC so it wouldn't be going against my house.
Anyway just need some feedback please



Sharon


also figured putting my debt on a ticker would help me to keep it front and centre.




Avatar for fire_bug
iVillage Member
Registered: 03-25-2003
In reply to: ileea
Sat, 01-17-2009 - 6:14pm
IMO, since the LOC is unsecured and at a lower interest rate, it's a great idea. Just cut up the CCs (don't close the accounts, though) or put them somewhere not easily accessible so you don't charge them up again.


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iVillage Member
Registered: 04-10-2003
In reply to: ileea
Sat, 01-17-2009 - 6:33pm
I agree with PP! If you have the LOC and its not secured then pay off the CC's. You must NOT under ANY CIRCUMSTANCES use them again. If you do you will end up in an even worse situation then you are in now. I would either cut them up (but not close them) or give them to a family member (in my case my dad) who I trust to hold them so they are out of the house completely. Good luck!

Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 11-17-2007
In reply to: ileea
Sat, 01-17-2009 - 8:15pm

I agree with everything every one else said Except do this before you pay the credit cards up Make a list of all the interest you paid on them the last month you owed on them. And since you will be saving that amount of money try to add it to the payment you are making to the LOC. That way it will paid off faster.


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Mary Ann


iVillage Member
Registered: 06-18-2004
In reply to: ileea
Sun, 01-18-2009 - 1:35am

As long as you don't us the ccs again, then using the LOC is a great idea.

Avatar for sullengurl
iVillage Member
Registered: 02-16-2004
In reply to: ileea
Sun, 01-18-2009 - 9:42am

Hi:) I think that it sounds like a great idea...BUT....do you have a plan of action as far as monthly/yearly budgeting and debt reduction that is doable? If so, then I am mostly

 


 



iVillage Member
Registered: 11-14-2008
In reply to: ileea
Mon, 01-19-2009 - 11:47am

I also thing it is a good idea. I just have my one loan. It is nice to attack one thing with one due date. Do NOT use those credit cards again and do NOT close the account. Make sure you focus on the emergency fund so that if something comes up you don't have to use your credit cards. Get your cards out of the house!



iVillage Member
Registered: 08-02-1998
In reply to: ileea
Mon, 01-19-2009 - 3:24pm
I have worked out a budget and we can make it on our income with about $300 left to go to CC & LOCs, but just before Christmas we took a trip to see our granddaughter be born. And all the expenses went onto the credit card. So that trip cost about $2500. And we had to put 1/2 the airplane insurance on credit card as my BIL didn't have his share to give us and it had to paid. I have the credit cards down to about $2000 right now.

So like you say I need to get my E-fund up as well. So far the $$ that goes into my E-fund is what I have been making from my sewing. I keep it in a drawer and when it reaches $50 or so I put it in the bank.


Sharon