...consoladation?

[jodyangel]

So we're talking to this guy from Citicorp about money matters..its FREE!! And he said one alternative to getting rid of my huge Discover bill is to consoladate into the mortgage. Will this show up on my credit report?

[Dane]

jody...

 

whatcha talking about?? Are you refinancing?? Taking out a HELOC? Getting a mortgage and taking out extra to pay of the bills??

 

What did the guy tell you??

[jodyangel]

Sorry! Well I have a mortgage thats only a year old. He suggested one solution to getting "rid" of that high interest discover card, would be to absorb it into a new mortgage. We also have a car loan and he talked about consoludating those into the mortgage..and Im not sure what all that means. I wont sign anything til Im sure Im making the best decision.

I thought consoludating meant they only required you to pay back "part" of the debt, which obviously showed up in a negative way on your credit report.

Yes?

BTW, the Discover is being stubborn and wont go down lower then 16.99%. The debt is $10,000

[Dane]

Jody-

 

Consolidate means to put seperate bills together. Most people do this to make lower payments or less payments. You still owe the same amount just to less people.

 

Lets say you paid mortgage 1000, car 350, and cc 250 a month. That's 1600 going to 3 places. You can conslidate into one loan and pay 1200. See??

 

BUT you should NEVER EVER EVER conslidate unsecured debt into your home unless there is NO chance you will mess up.

 

Right now- if you stopped paying discover the worst that could happen is a judgment and bad credit. If you stopped paying the car- they take the car.

 

BUT if you put the discover card and car into a mortgage and something happens

( and face it Sh&t happens) then you CAN LOSE YOUR HOUSE!!!!

 

Don't do man!!! Don't do it!!!

 

Have you tried to apply for other credit cards that have low BT offers??? Can you play the BT game??? Even if you can get 1/2 to another card you can pay that 10k off quicker!!

[jodyangel]

No I'm afraid lol! Afraid they'll say no.....but thats what I think I'll do tomorrow on my day off from work. Apply for something at least lower.

I asked this same guy if them looking at my credit would take it down at all..and he had to ask his supervisor who said NO, only if you have a string of ppl looking. Brrrrrrrrrrrpmh, wrong right? So I lost a bit of confidence there. Anyway, I am working towards paying off all the little cards I have so I can fully concentrate on this Discover. Its just amazing that I can't get a live person to tell me WHY I don't qualify for a lower rate NOW!!

[Dane]

 

 

For those that don't know, here's the Debt Snowball explained. You don't need to buy any books, or follow anyone's particular plan. You customize it to your own needs.

 

Much to my dismay, I started this year with far more CC debt than I had this same time last year.

 

So, I've set out a plan to destroy this debt. I'm using two free tools to help me, this one from Quicken, and this spreadsheet.

 

There are a few things I really like about the spreadsheet: You decide which cards get paid off first; it doesn't constantly lower your minimum payments; it makes calculations for teaser rate cards; and it has places to add a consistent monthly extra amount towards debt and also occasional extra funds.

 

I'm starting off with four cards. I've already got one below 50% utilization, with a second one getting there fast. I'm paying a little more than the minimum on all cards, and throwing every extra dollar towards the one over 50% until it goes under (it has the highest interest), then towards one I have a 0.99% rate for 6 months. When that one's paid off, then all that money will go to the next, etc.

 

I have my emergency savings fund already in place, which I am adding to at the same time.

 

I am starting with over $20,000 in CC debt.

 

I'm going to try my best to pay it all off by the end of this year. I will eat Ramen if I have to.

 

 

So, anyone out there who is already snowballing or wants to start and track progress with me???

 

 

Here is a link to a great post...and a GREAT spreadsheet (the second link)

I already have a plan but I use this too as a guide.

 

What are your scores jody?? Don't be afraid to apply to a few places but make sure they offer a LOW BT rate. I think Citibank and Providian have one right now.

 

Get aggressive about it and use the snowball method- kill those little cards quick so you can work on the biggie. I am killing two balances in March and a third in April- that's gunna free up an extra $200 a month to put towards the biggie.

 

YOU CAN DO THIS!!!!!

[CheapDB]

No I'm afraid lol! Afraid they'll say no.....but thats what I think I'll do tomorrow on my day off from work. Apply for something at least lower.

I asked this same guy if them looking at my credit would take it down at all..and he had to ask his supervisor who said NO, only if you have a string of ppl looking.  Brrrrrrrrrrrpmh, wrong right? So I lost a bit of confidence there. Anyway, I am working towards paying off all the little cards I have so I can fully concentrate on this Discover. Its just amazing that I can't get a live person to tell me WHY I don't qualify for a lower rate NOW!!

<{POST_SNAPBACK}>

 

Why don't you check your credit score before applying for anything else. Use myFICO to get your true FICO score. You're probably not qualifying for a lower rate because your score may be too low. Usually to get the best deals, you have to be in the 700+ range - some lenders even higher. Discover won't budge because they feel that you would have a hard time getting a better rate at another bank - probably based on the score they're looking at on the computer screen while they are on the phone with you.

 

But check your score before applying for any more credit. Remember, each time you apply for credit, your score drops even more. If you already have a low score, then a hard inquiry affects your score even more. In addition, it will look negative to future lenders to see a hard inquiry from a lender that doesn't show up on your report as a trade line - this indicates that you were denied and they'll wonder why.

 

Btw, there are lots of benefits of the Mortgage route, so I would not agree to completely rule it out. One, all of the interest you pay on your mortgage, HELOC or HEL is tax deductable - credit card interest is not. Considering this, you could increase your exemptions on your W-4's and increase your take-home-pay and use the extra to take care of other matters or put extra towards the mortgage. In addition, you would get a much lower rate than you probably could with a credit card.

 

Only issue is that you must not go into default on your mortgage. On the other hand, they lower monthly payments you would be making could make it easier to manage your money anyway so that this would not be a problem.

Edited February 23, 2005 by CheapDB

[Slappified]

Another pitfall to consolidating your CCs into the mortgage (other than possibly losing your house) is that instead of paying off the CC in a few years (if you work at paying it off), you'll be spreading it out over the length of your mortgage (up to 30 years). I thought about doing a re-fi to take care of my bills but found using the snowball way will save me in interest and the amount of time paying on the bills.

[CheapDB]

Another pitfall to consolidating your CCs into the mortgage (other than possibly losing your house) is that instead of paying off the CC in a few years (if you work at paying it off), you'll be spreading it out over the length of your mortgage (up to 30 years).  I thought about doing a re-fi to take care of my bills but found using the snowball way will save me in interest and the amount of time paying on the bills.

<{POST_SNAPBACK}>

 

How do you figure you saved in interest if you consider the fact you couldn't deduct any of the credit card interest. All of the mortgage interest is tax deductible each year.

[Dane]

Another pitfall to consolidating your CCs into the mortgage (other than possibly losing your house) is that instead of paying off the CC in a few years (if you work at paying it off), you'll be spreading it out over the length of your mortgage (up to 30 years).  I thought about doing a re-fi to take care of my bills but found using the snowball way will save me in interest and the amount of time paying on the bills.

<{POST_SNAPBACK}>

 

How do you figure you saved in interest if you consider the fact you couldn't deduct any of the credit card interest. All of the mortgage interest is tax deductible each year.

<{POST_SNAPBACK}>

 

 

He saved interest by paying off the credit cards quickly...instead of FINANCING the debt for 30 years. The tax write off is not big enough to justify dragging the payment out!

[Slappified]

Say I owe $25,000

 

Consolidate into mortgage for 30 years @ 5%

interest = $23,311.83 and say you're in the 25% tax bracket so your net interest = $17,483.87

 

Now use the snow ball steps and plan on paying it off in 3 years @ 15%

interest = $6,198.80

 

by not consolidating you save $11,285.07 and also pay it off 27 years earlier.

 

But this also assumes you have the discipline to actually snowball the debt, but consolidating also assumes you have the discipline to not run up your CCs again.

 

But you say you could pay off the mortgage quicker but making increased payments and thus saving due to tax write off and lower interest. Well yes assuming discipline. However you could BT to a lower rate card (even lower than 5%) and save the money and if something does happen you aren't at increased risk of losing your home.

[CheapDB]

Say I owe $25,000

 

Consolidate into mortgage for 30 years @ 5%

interest = $23,311.83 and say you're in the 25% tax bracket so your net interest = $17,483.87

 

Now use the snow ball steps and plan on paying it off in 3 years @ 15%

interest = $6,198.80

 

by not consolidating you save $11,285.07 and also pay it off 27 years earlier.

 

But this also assumes you have the discipline to actually snowball the debt, but consolidating also assumes you have the discipline to not run up your CCs again.

 

But you say you could pay off the mortgage quicker but making increased payments and thus saving due to tax write off and lower interest.  Well yes assuming discipline.  However you could BT to a lower rate card (even lower than 5%) and save the money and if something does happen you aren't at increased risk of losing your home.

<{POST_SNAPBACK}>

 

1. I thought we were only talking about 1 credit card here - the Discover that has a $10,000 balance and 16.99% interest rate.

 

2. To pay this off as you explained would take approximately $355/mo for 36 month, paying about $2,849.73 in interest.

 

3. If you add $10,000 in a HEL at 5% interest, you could still pay this off in THE SAME 36 month period, at about $300.00/mo, and about $788.72 in interest, all of which is deductible.

 

3. If he does have bad credit, he'd probably still be able to get a HEL at about 8%. Paying about $320/mo for 36 mos., paying about $1,250.99 in interest - all of which is deductible.

 

4. If it made financial sense and he added the debt to a traditional refinanced 30-year mortage at 5%, he could still put extra money towards the principle each month to pay off the $10,000 portion in 3 years and still have similar savings in interest charges, like you omentioned. Or, if he wanted, he could take the extra money and invest it in an accout that could average about a 10% return each year over the life of the loan- offsetting the 5% annual interest charges.

 

Also, with the mortgage, his revolving debt would be completely paid off, and his credit score would improve dramatically much faster as well. In which case, it would be more realistically possible to get better deals in credit offers in the near future. If he could get a rate on another card lower than 5% now, I'm sure Discover would have been more than willing to lower his current rate.

 

Yes, all of this takes discipline. But isn't discipline required for anyone to manage their finances effectively - might as well start now if you haven't already.

[jodyangel]

Yep. One card is all I am worrying about. I will read, read and READ these latest post over and over again before this dude from the Citicorp comes over tomorrow. I just don't know yet what I will do..

 

Thanks for input!! YOU guys ARE the best!!!!!!!!!!

[Slappified]

Say I owe $25,000

 

Consolidate into mortgage for 30 years @ 5%

interest = $23,311.83 and say you're in the 25% tax bracket so your net interest = $17,483.87

 

Now use the snow ball steps and plan on paying it off in 3 years @ 15%

interest = $6,198.80

 

by not consolidating you save $11,285.07 and also pay it off 27 years earlier.

 

But this also assumes you have the discipline to actually snowball the debt, but consolidating also assumes you have the discipline to not run up your CCs again.

 

But you say you could pay off the mortgage quicker but making increased payments and thus saving due to tax write off and lower interest.  Well yes assuming discipline.  However you could BT to a lower rate card (even lower than 5%) and save the money and if something does happen you aren't at increased risk of losing your home.

<{POST_SNAPBACK}>

 

1. I thought we were only talking about 1 credit card here - the Discover that has a $10,000 balance and 16.99% interest rate.

 

2. To pay this off as you explained would take approximately $355/mo for 36 month, paying about $2,849.73 in interest.

 

3. If you add $10,000 in a HEL at 5% interest, you could still pay this off in THE SAME 36 month period, at about $300.00/mo, and about $788.72 in interest, all of which is deductible.

 

3. If he does have bad credit, he'd probably still be able to get a HEL at about 8%. Paying about $320/mo for 36 mos., paying about $1,250.99 in interest - all of which is deductible.

 

4. If it made financial sense and he added the debt to a traditional refinanced 30-year mortage at 5%, he could still put extra money towards the principle each month to pay off the $10,000 portion in 3 years and still have similar savings in interest charges, like you omentioned. Or, if he wanted, he could take the extra money and invest it in an accout that could average about a 10% return each year over the life of the loan- offsetting the 5% annual interest charges.

 

Also, with the mortgage, his revolving debt would be completely paid off, and his credit score would improve dramatically much faster as well. In which case, it would be more realistically possible to get better deals in credit offers in the near future. If he could get a rate on another card lower than 5% now, I'm sure Discover would have been more than willing to lower his current rate.

 

Yes, all of this takes discipline. But isn't discipline required for anyone to manage their finances effectively - might as well start now if you haven't already.

<{POST_SNAPBACK}>

 

1. I was making a point in general and forgot there were actual numbers in a previous post.

 

2. Correct

 

3. Yes all the interest is deductible (assuming all IRS requirements are met) however, you don't just get all the money back, you get 10%, 20%, 30% of it back since it is a deduction and not a reduction. I didn't understand that at first, but now I do. But it would make the effective interest paid less.

 

4. It would IMO be better to get it paid off then start investing, just incase.

 

You also must take into account all the fees and costs associated with opening a HEL or HELOC. Also, according to the OP (from what I can tell), they were just going to make the normal payments over 30 years, I was just showing that you can get rid of it by snowballing. And then there's the safety that if your situation got bad that you may be able to keep your house even if you have to default on the CC.

 

OP: Now that you've seen both scenarios, you'll have to make the choice that best suits you, but the debt can be gotten rid of.

[radi8]

Jody, you'll have to sit down and figure the numbers.

 

If you used a HELOC or 2'nd mortgage to pay the Discover card, how much cash will that save you monthly?

I'm assuming that the HELOC or 2n'd will have considerably lower payments than the Discover card-

 

If you have enough left over- use it to make additional principle payments on the mortgage.

If you can make an additional principle payment every month- you'll effectively cut the term of the mortgage- in half!

 

It's not that hard. Check the statements or an amortization chart.

The Principle amount is that tiny little number that's buried in all the interest, lol. ( often it's 1/3 the regular payment amount!)

If you pay that amount additional every month- that's an entire payment you don't make later on.... saving you the interest charges.

 

The key to making a HELOC consolidation work is self restraint.

If you run up the charge cards again, you may find that the payments on the house and the new charge payments push you over the edge.

It happens a lot, and it's bad.

Lock the cards in a safety deposit box if you have to and tell the banker to yell at you if they see you sneaking in there, lol.

[jodyangel]

OOOoo I will NOT run up the debt again. Like I said, I learned my lesson.

So today (day off and its snowing outside hehe) I will look at what is in the bank and then look at the ittie bittie CC debts I have and decide if its best to pay one or more off..or send them all a little. I only have 3 small cards with less than $300 on each, so I can knock them off QUICK!! Like I said, I'm really only worried about that dang Discover card. That guy from primerica http://ww4.primerica.com/public/...will be coming over tonight. He ran a computer program on my financial numbers and the program will tell me what my options are....

 

"Our representatives can meet with you — in your own home — to conduct an FNA and show you how money works. Best of all, the FNA is free and completely confidential!

 

Your personalized FNA will provide a complete review of your current financial situation and offer solutions in the following areas:

• Income Protection

• Debt Elimination

• Asset Management

• Education Savings

After a thorough review of the areas above, the "Building Your Financial Future" summary will pull it all together by outlining specific steps to get your "financial house" in order."

 

See my problem is I am heading into midlife and have never been involved before in running the household. Now divorced and remarried I'm just now learning how to manage!! So sorry if I sound dull..I just am new at this =)

 

But I'm not one to just jump on what someone says..I have to read, study and be totally convinced before I'll make a big decision. I'll keep studying your replys here. ANY and ALL advise is well recieved and appreciated!!

[jodyangel]

 

 

For those that don't know, here's the Debt Snowball explained. You don't need to buy any books, or follow anyone's particular plan. You customize it to your own needs.

 

Much to my dismay, I started this year with far more CC debt than I had this same time last year.

 

So, I've set out a plan to destroy this debt. I'm using two free tools to help me, this one from Quicken, and this spreadsheet.

 

There are a few things I really like about the spreadsheet: You decide which cards get paid off first; it doesn't constantly lower your minimum payments; it makes calculations for teaser rate cards; and it has places to add a consistent monthly extra amount towards debt and also occasional extra funds.

 

I'm starting off with four cards. I've already got one below 50% utilization, with a second one getting there fast. I'm paying a little more than the minimum on all cards, and throwing every extra dollar towards the one over 50% until it goes under (it has the highest interest), then towards one I have a 0.99% rate for 6 months. When that one's paid off, then all that money will go to the next, etc.

 

I have my emergency savings fund already in place, which I am adding to at the same time.

 

I am starting with over $20,000 in CC debt.

 

I'm going to try my best to pay it all off by the end of this year. I will eat Ramen if I have to.

 

 

So, anyone out there who is already snowballing or wants to start and track progress with me???

 

 

Here is a link to a great post...and a GREAT spreadsheet (the second link)

I already have a plan but I use this too as a guide.

 

What are your scores jody?? Don't be afraid to apply to a few places but make sure they offer a LOW BT rate. I think Citibank and Providian have one right now.

 

Get aggressive about it and use the snowball method- kill those little cards quick so you can work on the biggie. I am killing two balances in March and a third in April- that's gunna free up an extra $200 a month to put towards the biggie.

 

YOU CAN DO THIS!!!!!

<{POST_SNAPBACK}>

Thanks thats GREAT advise! I will start my plan today. I have several cards which I want to get rid of fast, then apply all I can to the Discover. Would you advise me to apply for any of those low or NO interest cards to get the interest down...my question is if the card carrys $11,000, how much do you think I should ask to BT? Anyway, this is exciting to me! Snows coming down and I'm gonna lock the doors and continue reading and posting!

[momto2greatkids]

Ask for the full amount to be transfered, the worst that can happen is they will only approve you part of it. Having $7,000 at 16.99% and $4,000 at 0% is alot better than $11,000 at 16.99%. Before you apply for any you should get a copy of your report, make sure everything is correct and get your scores. Than you can post your scores and people here can give you ideas of what cards you can get.

Since you have other cards, knock out the one with a smaller balance that has a higher CL(so you can transfer more). After it's paid off, call them up and ask what kind of BT offer they can give you and CL increase. If you don't like the offer ask for a lower rate or ask them to wave the BT fee. They don't make money if your card has a $0 balance, some work pretty hard to get you to put money back on their card.

[jodyangel]

My credit score that I obtained on PrivacyGuard was 653. I have 2 accts with lates on them, Discover and WV..they'll drop off monitering in 6 months.

[jodyangel]

...something is telling me NOT to consoludate my debt into my mortgage. It looks like my monthly payment will rise over $200 a month and that would be for 30 years!! I truly feel with disipline I can pay down my debt myself. I DO want to get the rate on the discover card wayyy down tho. I just sent in a lower rate request and asked for 10%...we'll see LOL.

I really thought this man was only going to come over (the citigroup guy) and suggest ways for us to manage better..and suggest life insurance and how to set up a retirement acct. I cant put my finger on it..but Im wary.

I'll keep you updated!

[Gingerly]

Jody, trust your intuition! It's telling you not to roll the debt into the mortgage, so don't! They're just trying to sell you products. I'm not saying what they're offering is no good, some of it probably is. But there'll be plenty of time for that later. For now you need to payoff the debt.

 

You can do this.

 

I have been on my debt snowball for only a few months, and I am already amazed at the progress I have made. When you really put your mind to it, you'll surprise yourself!

 

Can you post all your scores? We can use those to help you find a good card that will approve you to BT to.

 

I have split my debts up across different cards so that they're all below 50% utilization (well, they're not quite there but will be by this time next month). I have decent rates on all, and spreading the debt out for some reason makes it seem more manageable. Getting/keeping the cards below 50% keeps the scores decent too while paying everything off.

 

I'm focusing on one card right now, and when that one's paid off, I'm thinking about going for a 0% BT card. Things will really start moving then.

 

This payoff thing is actually pretty fun once you get going. I play it like a game, how little money can I live on from one payday to the next? Buy nothing but gas and groceries, stay home every night and weekend for two weeks, and you have hella money to throw at a card.

 

Good luck, keep us posted!

[Clarkfan2]

Don't finance your credit card debt for 30 years! Don't consolidate non-secured debt with secured debt. Run from PrimeAmerica reps who want you to pay them to consolidate. I did the debt snowball and it works--that is if you do your part. It costs nothing to try it.

 

Clark

[madflower]

First and foremost, you want only enough savings to cover a bounced check. My bank they do it in 100 dollar increments so you keep 100 bucks in that account. That saves the check fee and the ding on your credit report. Other then that, you don't even want _anything_ in savings. It is almost pointless. You pay off your credit card with it. Then if you NEED it you can just charge it back to your account. If you have 500 bucks in your savings making 3% interest, and you are paying 10.99% for your loan you are losing well over 8% on your 500 bucks after you figure in your taxes. If you need that 1k after 6 months, fine but you saved 20 bucks in that 6 months. A savings account for most people is just psychological, however, if it makes you feel better, then do it.

 

---

Second, refinancing your first mortgage is stupid. You just did it a year ago. A cash out financing, is going to cost you money. IE the interest rates have gone up, your credit rating has gone down, and the loan fees are going to eat up at least 1k. However You CAN pay off principal early. it wont lower your monthly payment just the length of the term.

 

---

This is pretty simple:

Order your credit accounts by interest rates.

 

Figure out how much you can or do spend towards paying those off your bills. This should be coming directly off your budget. It is a FIXED number. Do NOT lower this number make it reasonable to start with. Add your leftovers every month to it. No one wants to plan on starving themselves every month.) Think of it as a fixed car payment. This is your "investments" money.

 

Add up all the minimum payment information. subtract that from your "investments" money whatever is leftover apply towards the balance of the highest rate loan.

 

pretty simple.

 

---

You can try to find cheaper money.

 

You have 4 credit cards and You look at your lowest interest rate card. And if it is less then your discover card, then take your groceries, gas, utilities, etc. and put them ON that card. and pay THAT money to to Discover and leave the balance on your other cards. IE the same thing as a balance transfer but no fees and it isn't treated as a cash advance. Just don't buy extra stuff and stay within your budget.

 

---

You are trying to avoid paying MORE for your money, then you are earning on it. In this case, you aren't earning anything so the cheaper you can get your money, the better.

 

Even more shuffling can be done. You can and should leverage your other investments. A HELOC is perfectly fine and are usually around 5-6% right now. 4%/yr on 10k is 400 bucks. If you can get a tax deduction then you can get like 1/4-1/3 of that money back too. Be careful of the fees and other costs associated with the loan. I think mine was 500 bucks to open and like 60 bucks a year for a maintance charges (and come to think of it I should look at finding something else, however it is interest only..)

 

Your risk is actually lower since. you are applying around 5% more of your money towards your loans.

Plus you MAY be eligable for a tax deduction.

 

You can do this with unsecured credit cards, with intro 0-2.9 rates, make sure they are free balance transfers or and a lower final rate then what you are currently paying. IE if you pay 2.9% for 6 months on 10k you can save 8% for the first 6 months, however if they tack on a 3% balance transfer fee you

lose money, and/or they charge more then 10.99% after 6 months, you are screwed too because i highly doubt you will be able to pay that money off in full.

 

The nice part about the HELOC is the interest rates is usually right around the prime rate.

 

You might also have an option of borrowing money against your 401k/403b plans. Not a withdrawal, but a loan using that money as collateral. So you might only pay 5% interest on that money, and save yourself 5%. You can take out multiple loans against it as long as you don't excede whatever you have put in it as principal.

 

--

 

Also, look at your OTHER loans. refinancing them at a lower interest rate is a good idea too.

If you can get 5% from say your 401k, or HELOC and you pay 6% on your car, you can save 1% on 10k or whatever. Thus you pay off (earn) 1% of your principal more per year which might only be 100 bucks a year, but it is still 100 extra dollars you don't have to spend and currently 1% is more then you will make more then most savings accounts.

 

----

 

WHATEVER you do decide to do, if you take out another loan, make SURE the minimum monthly payments do NOT go over your baseline "investments" fundage in your budget.

 

Ie you pay discover around 250/mo plus 100 extra. Maybe you borrow against your IRA, and your minimum payments go up to 400/mo. that is not a good deal, because you are overextending your budget. IF you have already been paying 100-200 dollars over your "investments" budget towards your bills, you can probably increase your "investments" line in your budget fairly safely.

 

---

You can do it. It just isn't going to happen overnight. It will take some discipline and maybe a few sacrifices. I did the whole budget thing, I got rid of cabletv, and dining out. I got my food budget down to 100/mo by making almost everything from scratch. You don't have to do it every month, that is just what ends up in the add to column of your "investments" line in your budget.

 

After you get your debts all paid off, keep the "investments" line in your budget now you can actually learn to invest it. Build up some savings and seriously go on the offensive and try to make some good investments, i prefer stocks, but mutual funds, real estate, etc whatever they are all valid investments. and maybe you can get 12%/yr on it consistantly. If you can do that, then loaning money for 5% isn't that bad of an idea.

[jodyangel]

Well I got my NJ tax rebate money yesterday in the mail. So I'm putting it towards the small cards. I have decided def. NOT to refinace...my rate would go from 5.75% to 10%...and I don't like the idea of streaching out debt for 30 years!! I CAN get rid of the small cards..probably in a few months now that I've become determined. But I still have to sort out the Discover. But one thing I know is......I will! Thanks for your help!

[Dane]

Glad you made the decision!

YOU CAN PAY OFF THE DEBT!!