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Consolidated loans...?

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When you take a consolidated loan...do they pay off the debt BEFORE the card or loan is closed or AFTER it is closed? If you cant get a personal loan is this your next best option...?

How does before or after affect the credit if its closed, but paid? Is that a good way to go if you have less than a certain amount? How does one loan payment, if you have a car loan and student loan... affect the credit then? Can you obtain credit again during the loan payoff or only after...? How are you treated by the credit card companies...? Really curious about this process.  

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consolidation loan for what? from where? how is a consolidation loan not a personal loan?

 

if you're talking about credit card debt, snowballing your cards, highest APR to lowest, may be a lot better especially if you can tap a few 0% bt offers.

 

shifting debt around often leads to accumulating more debt.

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Some banks will condition the issuance of the checks for a consolidation loan upon the closure of an account.  Not all do.  And NONE of the balance transfer options through credit card offers work in that fashion...the banks doing those offers WANT you to remain in debt since that gets them the free money when the consumer does not understand how interest works on those offers...

 

As hege basically indicates, however, more information is needed to get a better answer in your situation...

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Debt consolidation loans are just a fancy term for a personal loan that they charge you more for because you can't qualify for a decent rate. And they force you to close the accounts they are paying off so you can't run them back up again. 

 

As to the value of such a loan to an individual, it entirely depends on all the messy details. 

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What r some negatives to such a loan? I get negatives like rate, time frame, closing of maybe good accounts. What i really wanna no is does this bomb the credit and why?

I might be tired of credit cards, multiple payments, etc. Such a loan, if debt is under 10k could be paid off quickly enough where rate might not hurt too much if over a years time frame...? Then prime ish rates might come into play...

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It would help if you would take a step back and tell us the problem you're trying to solve.  You'll get better, more helpful responses.

 

As of 11 months ago you had no credit card debt and clean reports.  If you've amassed some credit card balances since then and you still have no lates,COs, etc., there are likely much wiser ways forward.

 

 

Edited by cv91915

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